What changed
RBI received an updated consolidated list from the UN Security Council's 1267 Committee, reflecting changes to individuals/entities linked to Al-Qaida and Taliban. Banks must replace the previous list (from June 10, 2010 circular) with this new version and continue strict screening and freezing actions.
What it means for you
Banks must immediately update their internal databases with the revised UN list and screen all new account openings against it. Existing accounts must be scanned to identify any matches, and if found, banks must freeze funds/assets as per the UAPA Order of August 27, 2009, and RBI's September 17, 2009 circular. Non-compliance could lead to regulatory action.
What you must do
- Update the consolidated list of terrorist individuals/entities with the latest UN 1267 Committee changes.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals/entities.
- Freeze funds, financial assets, or economic resources of designated entities as per paragraph 6 of the September 17, 2009 circular.
- Ensure 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
What is the source of the updated list?
The list is from the UN Security Council's 1267 Committee, forwarded by the Ministry of External Affairs. 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?
Banks must scan all existing accounts to ensure no account is held by or linked to any entity or individual on the updated list. If found, freeze funds and assets as per the UAPA Order and RBI's September 17, 2009 circular.
Who should acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the bank or financial institution must acknowledge receipt of this circular letter.