What changed
RBI has forwarded a fresh update from the UN Security Council's 1267 Committee (dated December 3, 2009) to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. This supersedes the previous circular of December 16, 2009, and requires banks to incorporate the latest changes into their screening process.
What it means for you
UCBs must immediately update their internal databases with the revised UN list to ensure no new account is opened for a listed entity or individual. Existing accounts must be scanned for matches, and if found, banks must freeze funds and assets as per the UAPA Order procedures outlined in earlier RBI circulars. Non-compliance could lead to regulatory action.
What you must do
- Update your bank's consolidated list of terrorist individuals/entities with the latest UNSC 1267 Committee changes (December 3, 2009).
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals/entities.
- Freeze funds, financial assets, or economic resources of matched accounts as per paragraph 6 of the November 16, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office through the Compliance/Principal Officer.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers and Principal Officers of UCBs, Branch managers handling account opening and KYC
What is the source of the updated list?
The list is the Consolidated List of individuals and entities linked to Al-Qaida and Taliban, maintained by the UN Security Council's 1267 Committee. The latest changes were communicated via a note dated December 3, 2009, from the Chairman of that committee.
What action is required if an existing account matches the list?
Banks must freeze the funds, financial assets, or economic resources held in such accounts, following the procedure detailed in paragraph 6 of RBI circular UBD.CO.BPD.PCB.Cir.No.21/12.05.001/2009-10 dated November 16, 2009.
Where can we access the full consolidated list?
The complete list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. Banks should refer to this for the most current version.