What changed
RBI has 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. RRBs must now update their internal lists accordingly and ensure compliance with the UAPA Order of August 27, 2009.
What it means for you
RRBs must immediately update their customer screening databases with the revised UN list. They are required to check all new account applicants and scan existing accounts to ensure no prohibited individuals or entities are banking with them. Non-compliance could lead to regulatory action.
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the latest UNSC 1267 Committee changes.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and freeze any linked to listed individuals/entities.
- Follow the freezing procedures outlined in paragraph 6 of the November 5, 2009 circular.
- Acknowledge receipt of this circular to your RBI Regional Office through your Compliance/Principal Officer.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers and 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 updated on May 5, 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 found, freezing of funds and assets must follow the procedure in the UAPA Order and earlier RBI circular.
Who should acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the RRB must acknowledge receipt to the concerned RBI Regional Office.