What changed
The UN Security Council's 1267 Committee revised its Consolidated List of individuals and entities linked to Al-Qaida and Taliban. RBI received a copy of the December 3, 2009 note from the Committee and forwarded it to banks, replacing the previous list from November 11, 2009 circular.
What it means for you
Banks must immediately update their internal sanctions screening databases with the latest UN list. Failure to identify and freeze accounts of designated persons could lead to regulatory action and reputational risk. The UAPA Order of August 27, 2009, and related freezing procedures remain the binding framework.
What you must do
- Update your consolidated list of terrorist individuals/entities with the latest UN 1267 Committee changes.
- Screen all new account applications against the updated list before onboarding.
- Scan all existing accounts to identify any matches with the revised list.
- Freeze funds and assets of any matched accounts as per paragraph 6 of the September 17, 2009 circular.
- Ensure your Compliance Officer/Principal Officer acknowledges receipt of this circular.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, Financial Institutions
Where can I find the full updated list?
The complete consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What action is required for existing accounts that match the list?
You must freeze the funds, financial assets, or economic resources held in such accounts, following the procedure detailed in paragraph 6 of RBI circular dated September 17, 2009.
Do I need to acknowledge this circular?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular letter to RBI.