What changed
RBI forwarded a new note from the Government of India (Ministry of External Affairs) dated July 15, 2010, containing changes made by the UN Security Council's 1267 Committee to the Consolidated List of individuals and entities linked to Al-Qaida and Taliban. This updates the previous list circulated via circular dated July 14, 2010.
What it means for you
Banks and All India Financial Institutions must immediately update their internal sanctions screening databases with the revised UN list. Failure to identify and freeze accounts of newly designated entities could lead to regulatory action and reputational risk. The circular reinforces the strict compliance requirements under the UAPA Order of August 27, 2009.
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the latest UNSC 1267 Committee changes from the July 15, 2010 government note.
- Screen all new account opening proposals against the updated list before onboarding any customer.
- Conduct a fresh scan of all existing accounts to identify any matches with the newly added names.
- Follow the freezing procedures detailed in paragraph 6 of RBI circular DBOD.AML.BC. No. 44/14.01.001/2009-10 dated September 17, 2009 for any matched accounts.
- 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 consolidated list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. RBI has also enclosed a copy of the government note with the changes.
What action is required if we find a match in an existing account?
You must immediately freeze the funds, financial assets, or economic resources held in the account, following the procedure outlined in paragraph 6 of the September 17, 2009 circular.
Does this circular replace the earlier July 14, 2010 circular?
No, it supplements it by providing the latest updates from the UNSC 1267 Committee. Both circulars remain relevant for compliance.