What changed
RBI forwarded a May 5, 2010 UN Security Council 1267 Committee note with changes to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. Banks must now update their records with these changes and ensure compliance with the UAPA Order dated August 27, 2009.
What it means for you
Co-operative banks must immediately update their internal screening lists with the revised UN sanctions list. They are required to check all new account applicants against this list and also scan existing accounts for any matches. Non-compliance with the UAPA freezing procedures could lead to regulatory action.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UNSC 1267 Committee changes received from the Ministry of External Affairs.
- Screen all new account proposals against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals/entities.
- Follow the freezing procedures detailed in paragraph 6 of RBI circular dated October 29, 2009 for any matches.
- Acknowledge receipt of this circular to your respective RBI Regional Office via the Compliance/Principal Officer.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Compliance Officers and Principal Officers of these banks
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 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 in the updated list. If found, freezing of funds and assets must follow the UAPA Order and RBI circular of October 29, 2009.
Who should acknowledge this circular?
The Compliance Officer or Principal Officer of the bank must acknowledge receipt to the concerned RBI Regional Office.