What changed
RBI received a Government of India note dated July 9, 2010, from the UN Security Council's 1267 Committee with changes to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. Banks must update their records with this revised list and ensure compliance with the UAPA Order of August 27, 2009.
What it means for you
Cooperative banks must immediately update their internal sanctions lists and screen all new account openings against the revised UNSC 1267 list. Existing accounts must also be scanned to identify any matches, and if found, banks must freeze funds and assets as per the procedure in the October 29, 2009 circular. Non-compliance could lead to regulatory action.
What you must do
- Update your internal consolidated list of UNSC 1267-designated individuals/entities with the latest changes from the July 9, 2010 note.
- 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 persons as per paragraph 6 of the October 29, 2009 circular.
- Have the Compliance Officer/Principal Officer acknowledge receipt of this circular to the concerned RBI Regional Office.
Who it affects
State and Central Cooperative Banks, Compliance Officers and Principal Officers of cooperative banks, All staff involved in account opening and AML screening
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.
What action is required if we find an existing account linked to a listed entity?
You must freeze the funds, financial assets, or economic services held in that account, following the procedure detailed in paragraph 6 of RBI circular RPCD.CO.RF.AML.BC. No. 34/07.40.00/2009-10 dated October 29, 2009.