What changed
RBI received from Government of India a copy of a note dated April 22, 2010, from the Chairman of the UN Security Council's 1267 Committee, regarding changes made to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. RRBs must update their records with these changes and ensure compliance with earlier circulars on account screening and asset freezing.
What it means for you
RRBs must immediately update their internal databases with the revised UN list and verify all new and existing accounts for matches. Failure to comply could lead to regulatory action and reputational risk. The circular reinforces the strict procedures under the UAPA Order of August 27, 2009, for freezing assets of designated entities.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UN 1267 Committee changes received from the Government of India.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals or entities.
- Follow the freezing procedures detailed in paragraph 6 of the November 5, 2009 circular for any matches.
- Acknowledge receipt of this circular to your respective RBI Regional Office via the Compliance Officer/Principal Officer.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers of RRBs, Principal Officers of RRBs
What is the source of the updated list?
The list is the UN Security Council's 1267 Committee consolidated list of individuals and entities linked to Al-Qaida and Taliban, as communicated by the Government of India (Ministry of External Affairs) via a note dated April 22, 2010.
What action is required for existing accounts?
RRBs must scan all existing accounts to ensure no account is held by or linked to any entity or individual on the updated list. If a match is found, freezing action as per the UAPA Order and earlier RBI circular must be taken.
Where can the full consolidated list be accessed?
The complete consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.