What changed
RBI received a fresh note from the Government of India (Ministry of External Affairs) dated June 4, 2010, containing changes made by the UN Security Council's 1267 Committee to the Consolidated List of individuals and entities associated with Al-Qaida and Taliban. Banks must update their internal lists accordingly.
What it means for you
Banks must immediately incorporate the updated UN list into their customer screening processes. This affects both new account openings and existing account reviews. Non-compliance with the UAPA Order and related RBI instructions could lead to regulatory action.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the new UN 1267 Committee changes.
- Screen all new account applicants against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals/entities.
- Follow the freezing procedures outlined in paragraph 6 of RBI circular dated September 17, 2009, for any matches.
- Ensure the Compliance Officer/Principal Officer acknowledges receipt of this circular.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
Where can we find the complete updated list?
The full consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What action is required if we find an existing account linked to a listed entity?
You must freeze the funds, financial assets, or economic resources as detailed in paragraph 6 of the RBI circular dated September 17, 2009, and comply with the UAPA Order.
Is acknowledgment of this circular mandatory?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular letter.