What changed
RBI forwarded a Government of India note dated May 11, 2010, from the UNSC 1267 Committee, detailing changes to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. Banks must update their records with this revised list and ensure compliance with earlier circulars on account screening and asset freezing.
What it means for you
Co-operative banks must immediately update their internal databases with the latest UN sanctions list to prevent any account being held by or linked to designated terrorists. Non-compliance could lead to regulatory action and reputational risk. The circular reinforces existing obligations under the UAPA Order of August 27, 2009, particularly for freezing funds and financial assets of listed entities.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UNSC 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 and report any matches with the list.
- Follow the freezing procedures detailed in paragraph 6 of RBI circular dated October 29, 2009, for any designated accounts.
- Acknowledge receipt of this circular to the concerned RBI Regional Office through the Compliance Officer/Principal Officer.
Who it affects
State Co-operative Banks (StCBs), District Central Co-operative Banks (DCCBs), Compliance Officers and Principal Officers of co-operative banks
Where can we find the complete consolidated list of designated individuals/entities?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. Banks must 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 in that account as per the procedure outlined in paragraph 6 of RBI circular dated October 29, 2009, and report to the authorities.
Do we need to acknowledge receipt of this circular?
Yes, the Compliance Officer or Principal Officer must send an acknowledgment to the concerned RBI Regional Office.