What changed
RBI has forwarded a March 11, 2010 UN Security Council 1267 Committee note with changes to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. RRBs must now incorporate these updates into their screening processes.
What it means for you
RRBs must immediately update their internal watchlists with the revised UN list and cross-check all new and existing accounts. Non-compliance with the UAPA Order and freezing procedures could lead to regulatory action. This reinforces the bank's role in preventing financial support to terrorism.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UN 1267 Committee changes received from the Government of India.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and flag any matches with the list.
- Follow the freezing procedures outlined in paragraph 6 of the November 5, 2009 circular for any matched accounts.
- Acknowledge receipt of this circular to your respective RBI Regional Office through the Compliance/Principal Officer.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers and Principal Officers of RRBs, Branch managers handling account opening and review
Where can we 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 if we find an existing account linked to a listed entity?
You must freeze the funds, financial assets, or economic resources in that account as detailed in paragraph 6 of the November 5, 2009 circular.
Do we need to confirm receipt of this circular?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt to the concerned RBI Regional Office.