What changed
RBI forwarded three UN 1267 Committee notes (dated Sep 3, Sep 23, Oct 22, 2009) with amendments to the Consolidated List of individuals/entities linked to Al-Qaida and Taliban. The amendments include strike-through/underline changes to four entries and deletions of one or more entries, as detailed in three annexes.
What it means for you
Co-operative banks must immediately update their internal terrorist lists to reflect the latest UN sanctions. Failure to screen new accounts and review existing ones against this list could lead to regulatory action and non-compliance with UAPA orders.
What you must do
- Update the consolidated list of terrorist individuals/entities with the three annexes provided in this circular.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and freeze any linked to listed individuals/entities.
- Follow the freezing procedures outlined in paragraph 6 of the October 29, 2009 circular.
- Acknowledge receipt of this letter to your respective RBI Regional Office via the Compliance Officer.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (CCBs), Compliance Officers of co-operative banks, Branch managers handling account opening
What is the source of the updated list?
The updates come from the UN Security Council's 1267 Committee, forwarded by the Ministry of External Affairs. The full list is also available on the UN website.
Do we need to check only new accounts or existing ones too?
Both. You must screen new accounts before opening and scan all existing accounts to ensure none are held by or linked to listed entities.
What action is required for accounts linked to listed entities?
Freeze funds, financial assets, or economic resources in those accounts as per paragraph 6 of the October 29, 2009 circular.