What changed
RBI received a May 5, 2010 note 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 must now update their records with these changes and ensure no new or existing accounts are linked to listed entities.
What it means for you
Banks must immediately update their internal sanctions lists with the latest UN 1267/1822 changes. This affects customer onboarding and ongoing account monitoring, requiring enhanced due diligence. Non-compliance could lead to regulatory action, as the UAPA Order of August 27, 2009 must be strictly followed.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UN 1267/1822 changes received from the Government of India.
- Before opening any new account, verify the proposed customer's name against the updated list.
- Scan all existing accounts to ensure no account is held by or linked to any listed individual or entity.
- Follow the freezing procedures for funds, financial assets, or economic resources as per paragraph 6 of the September 17, 2009 circular.
- 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 list is from the UN Security Council's 1267 Committee, forwarded by the Ministry of External Affairs via a note dated May 5, 2010. The full consolidated list is available on the UN website.
What action is required for existing accounts?
Banks must scan all existing accounts to ensure no account is held by or linked to any entity or individual on the updated list. If found, freezing procedures as per the September 17, 2009 circular must be followed.
What is the legal basis for this requirement?
The UAPA Order dated August 27, 2009, as referenced in RBI's circular of September 17, 2009, provides the legal framework. Banks must ensure meticulous compliance with that Order.