What changed
RBI forwarded a June 4, 2010 UN Security Council 1267 Committee note with changes to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. Banks must now update their records with these changes and ensure no account is linked to any listed entity.
What it means for you
Co-operative banks must immediately update their internal watchlists and screen all new and existing customers against the revised UN list. Non-compliance with UAPA freezing orders could lead to regulatory action. This reinforces the ongoing obligation to prevent any financial support to designated terrorist groups.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UN 1267 Committee changes received from RBI.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and report any links to listed individuals or entities.
- Follow the freezing procedures outlined in the UAPA Order of August 27, 2009 and RBI circular of October 29, 2009.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Compliance Officers / Principal Officers of co-operative banks
Where can we find the complete consolidated list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What action is required for existing accounts linked to listed entities?
Banks must freeze funds, financial assets, or economic resources held in such accounts, following the procedure detailed in paragraph 6 of the RBI circular dated October 29, 2009.