What changed
RBI issued a circular on June 14, 2010, forwarding a UN Security Council 1267 Committee note dated June 4, 2010, with changes to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. RRBs are required to update their records with this revised list and ensure compliance with earlier instructions on account screening and asset freezing.
What it means for you
RRBs must immediately update their internal databases with the latest UN consolidated list to prevent any account being held by or linked to designated terrorists. This reinforces the obligation to screen all new customers and periodically scan existing accounts, with strict adherence to the UAPA Order of August 27, 2009. Non-compliance could lead to regulatory action and reputational risk.
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 openings against the updated list before onboarding customers.
- Scan all existing accounts to identify and report any matches with the list.
- Freeze funds, financial assets, or economic resources of designated individuals/entities as per paragraph 6 of the November 5, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office through the Compliance Officer/Principal Officer.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers and Principal Officers of RRBs, Branch managers handling account opening and monitoring
What is the source of the updated list of terrorists?
The list is based on changes made by the UN Security Council's 1267 Committee, forwarded by the Government of India (Ministry of External Affairs) via a note dated June 4, 2010.
What actions must RRBs take 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 consolidated list. If found, they must freeze funds and other assets as per the UAPA Order procedures.
Where can the complete consolidated list be accessed?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.