What changed
RBI forwarded a January 26, 2010 UN 1267 Committee note with changes to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. This updates the earlier list circulated via March 11, 2010 circular. Banks must now use this revised list for account screening.
What it means for you
Co-operative banks must immediately update their internal watchlists with the latest UN 1267 list. Failure to screen new or existing accounts could lead to regulatory action. The circular reinforces that freezing of funds must follow the detailed procedures in the October 29, 2009 circular (paragraph 6).
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the latest UN 1267 Committee changes (enclosed with this circular).
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any matches with the updated list.
- If a match is found, freeze funds/assets as per paragraph 6 of the October 29, 2009 circular.
- Ensure Compliance Officer/Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Who it affects
All State and Central Co-operative Banks, Compliance Officers and Principal Officers of co-operative banks
Where can I find the full consolidated list?
The complete list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. RBI has also enclosed a copy of the UN note with this circular.
What action is required if an existing account matches the list?
You must freeze the funds, financial assets, or economic resources held in that account, following the procedure detailed in paragraph 6 of RBI circular dated October 29, 2009.
Do I need to confirm receipt of this circular?
Yes. The Compliance Officer or Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office.