What changed
RBI has forwarded a July 9, 2010 UN Security Council 1267 Committee note with changes to the consolidated list of terrorist individuals and entities. Urban Co-operative Banks must now update their records with these changes and ensure compliance with earlier circulars on account screening and asset freezing.
What it means for you
UCBs must immediately update their internal databases with the revised UN list and verify that no new or existing account is linked to any listed entity. Banks are also required to strictly follow the UAPA Order of August 27, 2009 for freezing funds and financial assets of designated individuals/entities, as detailed in the November 16, 2009 circular.
What you must do
- Update the consolidated list of terrorist individuals/entities from the UN website and circulate it to all branches.
- Screen all new account openings against the updated list before onboarding customers.
- Scan all existing accounts to identify and report any matches with the list.
- Follow the UAPA Order procedures for freezing funds and assets of designated entities as per paragraph 6 of the November 16, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers / Principal Officers of UCBs, Branch managers handling account opening and KYC
Where can we find the latest consolidated list of terrorist individuals/entities?
The complete 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 UN note dated July 9, 2010 with this circular.
What action is required if we find an existing account linked to a listed entity?
You must immediately freeze the funds, financial assets, or economic resources in that account, following the procedure detailed in paragraph 6 of RBI circular dated November 16, 2009, and comply with the UAPA Order of August 27, 2009.
Do we need to report compliance to RBI?
Yes, the Compliance Officer or Principal Officer of the bank must acknowledge receipt of this circular to the concerned RBI Regional Office.