What changed
RBI forwarded a note dated March 25, 2010 from the Chairman of the UN Security Council's 1267 Committee with changes to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. This refers to the previous list circulated via circular dated March 23, 2010.
What it means for you
UCBs must immediately update their internal screening databases with the revised UN list. Failure to identify and freeze accounts of designated entities could lead to regulatory action and reputational risk. The circular reinforces existing obligations under the UAPA Order dated August 27, 2009 enclosed to the circular dated November 16, 2009.
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the latest changes from the UNSC 1267 Committee.
- Screen all new account applications against the updated list before onboarding.
- Scan all existing accounts to identify any matches with the revised list.
- Freeze funds, financial assets, or economic resources of any matched accounts as per paragraph 6 of the circular dated November 16, 2009.
- Acknowledge receipt of this circular to the concerned RBI Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers / Principal Officers of UCBs
Where can I find the complete updated list of designated individuals/entities?
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, following the procedure detailed in paragraph 6 of RBI circular dated November 16, 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.