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India's Hindu newspaper said the country's regional rural banks have been advised to consider risks in dealing with eight countries including Sri Lanka by the Reserve Bank of India, the country's central bank.
Regional banks have been advised to "take into account risks arising from the deficiencies in anti-money laundering /combating the financing of terrorism regime" when doing deals with persons, firms or financial institutions from or in the areas, the newspaper said.
Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Syria and Turkey were also listed as areas with deficiencies or without an action plan on June 24, in a statement by the Financial Action Task Force (FATF), an intergovernmental body.
Sri Lanka had some deficiencies but an action plan had been submitted on which progress was needed, the statement said.
Iran and North Korea were areas where other countries had to "apply counter-measures to protect the international financial system from the on-going and substantial money launder