The Reserve Bank of India has directed Non-Banking Financial Companies (NBFCs) to be alert while transacting business from countries like Iran, Pakistan and North Korea. The global agency, Financial Action Task Force (FATF) has identified these countries as having lax anti money laundering and terror financing laws. In a notification issued in Mumbai, the RBI said that all NBFCs are accordingly advised to take into account risks arising from the deficiencies in Combating of Financing of Terrorism regime of these countries. The government had informed Parliament this week that it is seeking membership of the FATF as it would strengthen the nation's capacity to track terror funding from across the borders and help fight organised crime. Set up by the G-7 summit in Paris, FATF aims at generating necessary political will to bring about national legislative and regulatory reforms to combat money laundering.