What changed
RBI received a note dated April 12, 2010 from the UN Security Council's 1267 Committee with changes to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. Banks are required to update their records with this revised list and ensure no accounts are held by or linked to any listed entity or individual.
What it means for you
Banks must immediately update their internal screening databases with the latest UN consolidated list. Before opening any new account, customer names must be verified against this list, and all existing accounts must be scanned to identify any matches. For any matches found, banks must freeze funds, financial assets, or economic resources as per the procedure in the UAPA Order and RBI's earlier circular.
What you must do
- Update your internal AML/KYC systems with the latest UN consolidated list of individuals/entities linked to Al-Qaida and Taliban.
- Screen all new account applications against the updated list before onboarding.
- Conduct a retrospective scan of all existing accounts to identify any matches with the list.
- Freeze funds and economic resources of any matched accounts as per the UAPA Order and RBI circular dated September 17, 2009.
- Ensure the Compliance Officer/Principal Officer acknowledges receipt of this circular.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
What is the source of the updated list?
The updated consolidated list is from the UN Security Council's 1267 Committee, forwarded by the Government of India (Ministry of External Affairs). The full list is available on the UN website.
What action is required if a match is found in an existing account?
Banks must freeze the funds, financial assets, or economic resources held in such accounts, following the procedure detailed in paragraph 6 of RBI's circular dated September 17, 2009, which implements the UAPA Order.
Do we need to acknowledge receipt of this circular?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular letter to RBI.