What changed
RBI has forwarded a March 25, 2010 note from the UN Security Council's 1267 Committee with changes to the consolidated list of terrorist individuals and entities. This updates the previous list circulated via the March 30, 2010 circular. RRBs must now use this revised list for all customer screening.
What it means for you
RRBs must immediately update their internal databases with the new UN list and cross-check all existing and new customers. Failure to identify a match could lead to regulatory action. The circular reinforces the legal obligation under the UAPA Order, including freezing of assets for designated entities.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UN 1267 Committee's latest changes.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any matches with the list and report findings.
- Follow the freezing procedures detailed in paragraph 6 of the November 5, 2009 circular for any matched accounts.
- Ensure the Compliance Officer/Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers and Principal Officers of RRBs, Branch managers handling account opening and KYC
What is the source of the updated list?
The list is from the UN Security Council's 1267 Committee, as communicated by the Government of India (Ministry of External Affairs) via a note dated March 25, 2010.
What action is required for existing accounts that match the list?
RRBs must follow the freezing procedures outlined in paragraph 6 of the November 5, 2009 circular, which includes freezing funds, financial assets, or economic resources.
Where can we find the complete consolidated list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.