What changed
RBI forwarded a new UN Security Council 1267 Committee note (dated April 22, 2010) with changes to the Consolidated List of individuals and entities linked to Al-Qaida and Taliban. This updates the previous list circulated via circular dated April 15, 2010. Banks must now use this latest version for all screening.
What it means for you
Banks must immediately update their internal sanctions screening databases with the revised UN list. Failure to identify and freeze assets of newly designated entities could lead to regulatory action. This reinforces the government's UAPA Order compliance requirements and the need for meticulous record-keeping.
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the latest UN 1267 Committee changes from the enclosed note.
- Screen all new account applications against the updated list before onboarding any customer.
- Run a fresh scan of all existing accounts to identify any matches with the revised list.
- Freeze funds, financial assets, or economic resources of any newly designated individuals/entities as per paragraph 6 of the September 17, 2009 circular.
- Ensure your 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
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. RBI has also enclosed the latest changes from the April 22, 2010 note.
What action is required for existing accounts that match the list?
You must freeze all funds, financial assets, or economic resources held in such accounts, following the procedure detailed in paragraph 6 of RBI circular DBOD.AML.BC. No. 44/14.01.001/2009-10 dated September 17, 2009.
Is acknowledgment of this circular mandatory?
Yes, the Compliance Officer/Principal Officer should acknowledge receipt of this circular letter to RBI.