What changed
RBI received a fresh note from the UN Security Council's 1267 Committee, dated November 17, 2009, with changes to the consolidated list of Al-Qaida and Taliban-linked entities. Banks are now required to update their internal lists and ensure compliance with the revised UN sanctions.
What it means for you
Banks must immediately update their customer screening databases with the latest UN list and verify no existing account is linked to any listed individual or entity. Failure to comply could lead to regulatory action, and banks must also freeze funds/assets of designated persons as per the UAPA Order dated August 27, 2009, with procedures detailed in the September 17, 2009 circular.
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the latest UN 1267 Committee changes.
- Screen all new account applications against the updated list before opening any account.
- Scan all existing accounts to ensure none are held by or linked to listed entities or individuals.
- Freeze funds, financial assets, or economic resources of designated persons 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 complete updated list?
The full 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 linked to listed entities?
You must freeze all funds, financial assets, or economic resources held in such accounts, following the procedure detailed in paragraph 6 of the September 17, 2009 circular.
Do I need to acknowledge receipt of this circular?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular letter.