What changed
RBI forwarded a January 19, 2010 note from the UN Security Council's 1267 Committee with changes to the consolidated list of Al-Qaida and Taliban-linked individuals/entities. This updates the previous list circulated via the March 2, 2010 circular. Banks must now incorporate these latest changes into their screening processes.
What it means for you
Co-operative banks must immediately update their internal watchlists with the revised UN list and ensure no new account is opened for any listed entity. Existing accounts must be scanned for matches, and if found, banks must freeze funds and financial assets as per the UAPA Order procedures detailed in the October 29, 2009 circular. Non-compliance could lead to regulatory action.
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the latest UNSC 1267 Committee changes.
- 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 any matched accounts as per paragraph 6 of the October 29, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office via the Compliance/Principal Officer.
Who it affects
All State Co-operative Banks, All Central Co-operative Banks, Compliance Officers and Principal Officers of co-operative banks
What is the source of the updated list?
The list is based on a note dated January 19, 2010 from the Chairman of the UN Security Council's 1267 Committee, forwarded by the Ministry of External Affairs. The full consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What action is required if we find an existing account linked to a listed entity?
You must freeze the funds, financial assets, or economic resources held in that account, following the procedure detailed in paragraph 6 of RBI circular RPCD.CO.RF.AML.BC. No. 34/07.40.00/2009-10 dated October 29, 2009.
Do we need to report compliance to RBI?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office.