What changed
RBI forwarded a UN 1267 Committee note (April 22, 2010) with changes to the consolidated list of Al-Qaida and Taliban-linked individuals/entities. Banks must update their records with this revised list and ensure no new or existing accounts are linked to listed entities.
What it means for you
Co-operative banks must immediately incorporate the updated UN terror list into their account opening and monitoring processes. Failure to screen accounts against this list could lead to regulatory action. The circular reinforces existing UAPA compliance obligations, including freezing of assets for designated entities.
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the changes from the UN 1267 Committee note dated April 22, 2010.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and report any matches with the updated list.
- Follow the freezing procedures outlined in paragraph 6 of RBI circular dated October 29, 2009 for any matched accounts.
- Acknowledge receipt of this circular to your respective RBI Regional Office through the Compliance/Principal Officer.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Compliance Officers and Principal Officers of co-operative banks
Where can we find the complete consolidated list of individuals/entities?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. RBI has also enclosed a copy of the UN note with changes.
What action is required if we find an existing account linked to a listed entity?
You must freeze the funds, financial assets, or economic resources held in that account, following the procedure detailed in paragraph 6 of RBI circular dated October 29, 2009.
Do we need to report compliance to RBI?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office.