What changed
RBI issued an updated consolidated list of terrorist individuals and entities under UNSCR 1267 and 1822, based on a May 11, 2010 note from the UN Security Council's 1267 Committee. This supersedes the previous list circulated on June 2, 2010. RRBs must now use this latest list for all customer screening.
What it means for you
RRBs must immediately update their internal databases with the revised UN list and cross-check all existing and new accounts. Non-compliance with UAPA Order procedures for freezing funds or assets of designated entities could lead to regulatory action. This reinforces the zero-tolerance stance on terror financing in the banking system.
What you must do
- Update the consolidated list of terrorist individuals/entities from the UN website and circulate it to all branches.
- Before opening any new account, verify the proposed customer's name against the updated list.
- Scan all existing accounts to identify any matches with the list and report findings to the Compliance Officer.
- Follow the freezing procedures detailed in paragraph 6 of the November 5, 2009 circular for any matched accounts.
- Acknowledge receipt of this circular to your respective Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers and Principal Officers of RRBs, Branch managers handling account opening and KYC
Where can we access the latest consolidated list?
The complete 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 this circular.
What action is required if an existing account matches the list?
Immediately freeze the funds, financial assets, or economic resources in the account as per the procedure outlined in paragraph 6 of the November 5, 2009 circular. Ensure strict compliance with the UAPA Order.
Do we need to report compliance to RBI?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this letter to the concerned Regional Office of RBI.