What changed
RBI has forwarded a May 11, 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. This updates the previous list circulated via circular dated May 12, 2010.
What it means for you
Urban Co-operative Banks must immediately incorporate the revised UN list into their customer screening processes. Failure to identify and freeze accounts of listed entities could lead to regulatory action and reputational risk. Banks must also ensure strict compliance with the UAPA Order of August 27, 2009, including freezing of funds and economic resources.
What you must do
- Update your internal UNSCR 1267 consolidated list with the latest changes from the May 11, 2010 UN Committee note.
- Screen all new account openings against the updated list before onboarding customers.
- Scan all existing accounts to identify any matches with the revised list and report findings.
- Freeze funds, financial assets, or economic resources of any matched accounts as per paragraph 6 of the November 16, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office through the Compliance Officer or Principal Officer.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers and Principal Officers of UCBs, Branch managers handling account opening and KYC
Where can we find the complete updated consolidated list?
The full 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 version.
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 circular dated November 16, 2009.
Is this circular applicable only to Urban Co-operative Banks?
Yes, this specific circular is addressed to all Primary (Urban) Co-operative Banks. Other bank categories may have separate instructions.