What changed
RBI received from Government of India (Ministry of External Affairs) a copy of note dated April 12, 2010 from the Chairman of UN Security Council's 1267 Committee regarding changes made in the Consolidated List of Individuals and entities linked to Al-Qaida and Taliban. Banks must update their records with this revised list.
What it means for you
UCBs must ensure no new account is opened for any listed individual/entity and scan all existing accounts for matches. Compliance with the UAPA Order of August 27, 2009, and freezing procedures from the November 16, 2009 circular is mandatory. Non-compliance could lead to regulatory action.
What you must do
- Update the consolidated list of terrorist individuals/entities from the UN website and your records.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and freeze any linked to listed entities or individuals.
- Follow freezing procedures for funds and assets as per paragraph 6 of the November 16, 2009 circular.
- 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
What is the source of the updated list?
The list is from the UN Security Council's 1267 Committee, available on their website at http://www.un.org/sc/committees/1267/consolist.shtml.
What action is required for existing accounts?
Banks must scan all existing accounts to ensure no account is held by or linked to any listed individual or entity, and freeze any such accounts as per the UAPA Order.
To whom should we acknowledge receipt?
The Compliance Officer/Principal Officer should acknowledge receipt to the concerned RBI Regional Office.