What changed
RBI issued a circular on January 21, 2010, forwarding a UN Security Council 1267 Committee note dated January 19, 2010, which made changes to the Consolidated List of individuals and entities linked to Al-Qaida and Taliban. Banks must update their records accordingly.
What it means for you
Banks must immediately incorporate the updated UN list into their customer screening processes. Failure to identify and freeze accounts of designated terrorists could lead to regulatory action. This reinforces the strict compliance regime under the UAPA Order of August 27, 2009.
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 accounts.
- Scan all existing accounts to ensure none are held by or linked to listed entities or individuals.
- Follow the freezing procedures detailed in paragraph 6 of the September 17, 2009 circular for any matches.
- 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
What is the source of the updated list?
The updated list comes from the UN Security Council's 1267 Committee, as communicated by the Government of India (Ministry of External Affairs) via a note dated January 19, 2010.
What should we do if we find a match in existing accounts?
You must freeze the funds, financial assets, or economic resources of the designated individual/entity as per the procedures in paragraph 6 of RBI's circular dated September 17, 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.