What changed
RBI forwarded a July 12, 2010 note from the UN Security Council's 1267 Committee containing changes to the consolidated list of terrorist-linked individuals and entities. This updates the previous list circulated via RBI circular dated July 2, 2010.
What it means for you
Urban Cooperative Banks must immediately update their internal screening databases with the revised UN list. Failure to identify and freeze accounts of designated persons could lead to regulatory action and reputational risk.
What you must do
- Update the consolidated list of terrorist individuals/entities in your systems using the UN website link provided.
- Screen all new account applications against the updated list before onboarding.
- Scan all existing accounts to identify any matches with the revised list.
- Freeze funds and financial assets of any matched accounts as per the procedure in RBI's November 16, 2009 circular.
- Acknowledge receipt of this circular to your respective Regional Office.
Who it affects
All Primary (Urban) Cooperative Banks, Compliance Officers and Principal Officers of UCBs
Where can we find the complete updated list?
The full consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What action is required for existing accounts that match the list?
You must freeze the funds, financial assets, or economic resources held in such accounts, following the procedure detailed in paragraph 6 of RBI's circular dated November 16, 2009.
Do we need to report compliance to RBI?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular to the concerned Regional Office of RBI.