What changed
RBI issued a circular on July 28, 2010, forwarding a Government of India note dated July 19, 2010, with changes to the UN 1267 Committee's consolidated list of terrorist individuals and entities. Banks must update their internal lists accordingly and ensure compliance with earlier UAPA-related instructions.
What it means for you
StCBs and DCCBs must immediately incorporate the updated UN list into their account opening and monitoring processes. Failure to screen accounts against this list could lead to regulatory action and reputational risk. The circular reinforces the need for strict adherence to anti-money laundering and counter-terrorism financing norms.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UN 1267 Committee's latest changes.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals or entities.
- Follow the freezing procedures outlined in the UAPA Order of August 27, 2009, and RBI's October 29, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Compliance Officers and Principal Officers of these banks
What is the source of the updated list?
The list is maintained by the UN Security Council's 1267 Committee and is available on their website. RBI forwarded the changes received from the Ministry of External Affairs.
What action is required for existing accounts?
Banks must scan all existing accounts to ensure no account is held by or linked to any entity or individual on the updated list. If found, freezing actions as per the UAPA Order must be taken.
Who needs to acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of each StCB and DCCB must send an acknowledgment to the concerned RBI Regional Office.