What changed
RBI received a July 9, 2010 note from the UN 1267 Committee with changes to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. Banks are now required to update their records with this latest list and ensure no accounts are held by or linked to any newly added names.
What it means for you
Banks must immediately update their internal screening systems with the revised UN sanctions list. Failure to identify and freeze accounts of designated entities could lead to regulatory action and reputational risk. This reinforces the ongoing obligation to comply with UAPA and UNSCR requirements.
What you must do
- Update the consolidated list of terrorist individuals/entities as circulated by RBI and ensure new account openings are screened against it.
- Scan all existing accounts to confirm none are held by or linked to any individual/entity on the updated list.
- Strictly follow the procedure laid down in the UAPA Order dated August 27, 2009, as per RBI circular of September 17, 2009.
- Freeze funds, financial assets, or economic resources of designated individuals/entities as detailed in paragraph 6 of the September 17, 2009 circular.
- Acknowledge receipt of this circular through the Compliance Officer/Principal Officer.
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 comes from the UN Security Council's 1267 Committee, forwarded by the Government of India (Ministry of External Affairs) via a note dated July 9, 2010.
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, and freeze assets as per the UAPA Order.
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.