What changed
RBI forwarded a March 11, 2010 UN 1267 Committee note with changes to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. This updates the previous circular dated March 19, 2010. Banks must now use this revised list for compliance.
What it means for you
UCBs must immediately update their internal databases with the latest UN terror list. Failure to screen new accounts or scan existing ones could lead to regulatory action. The freezing of assets must follow the detailed steps in the November 16, 2009 circular, ensuring no funds reach designated entities.
What you must do
- Update your consolidated list of UNSC 1267-designated individuals/entities with the latest changes from the March 11, 2010 note.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and flag any linked to listed individuals/entities.
- Follow the freezing procedures outlined in paragraph 6 of the November 16, 2009 circular for any matches.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers / Principal Officers of UCBs, Branch managers handling account opening and monitoring
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 changes.
What action is required if we find a match in an existing account?
You must freeze the funds, financial assets, or economic resources in that account as per paragraph 6 of RBI circular dated November 16, 2009, and report to the Compliance Officer.
Is this circular applicable only to new accounts?
No. It applies to both new accounts (pre-opening screening) and existing accounts (full scan to ensure no account is held by or linked to listed entities).