What changed
RBI received a May 11, 2010 note from the Government of India forwarding changes made by the UN Security Council's 1267 Committee to the Consolidated List of individuals and entities linked to Al-Qaida and Taliban. This circular updates the previous list circulated on May 6, 2010 and requires banks to incorporate these changes into their screening processes.
What it means for you
Banks must immediately update their internal sanctions lists with the revised UN consolidated list and ensure no new account is opened for any listed individual/entity. Existing accounts must be scanned to identify and freeze any linked accounts, following the detailed procedures in the UAPA Order of August 27, 2009 and RBI's September 17, 2009 circular.
What you must do
- Update your internal sanctions database with the latest UNSC 1267 Committee consolidated list available on the UN website.
- Screen all new account applications against the updated list before onboarding any customer.
- Conduct a fresh scan of all existing accounts to identify any matches with the revised list.
- Freeze funds, financial assets, or economic resources of any matched accounts as per paragraph 6 of the September 17, 2009 circular.
- Ensure your Compliance Officer/Principal Officer acknowledges receipt of this circular to RBI.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
Where can we find the complete updated list of terrorist individuals/entities?
The full consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. Banks should refer to this source for the most current details.
What action is required if we find an existing account linked to a listed entity?
You must immediately freeze the funds, financial assets, or economic resources held in that account, following the procedure detailed in paragraph 6 of RBI's circular dated September 17, 2009.
Do we need to acknowledge receipt of this circular?
Yes, the Compliance Officer or Principal Officer of your institution should acknowledge receipt of this circular letter to RBI.