What changed
RBI has forwarded a new UN Security Council 1267 Committee note dated July 19, 2010, with changes to the consolidated list of terrorist-linked individuals and entities. Urban Cooperative Banks must update their internal lists accordingly and ensure compliance with the UAPA Order of August 27, 2009.
What it means for you
Banks must immediately update their customer screening databases with the revised UN list to prevent any new accounts being opened for listed entities. Existing accounts must be scanned to identify and freeze any linked assets, following the detailed procedures from the November 2009 circular.
What you must do
- Update the consolidated list of terrorist individuals/entities from the UN website and cross-check against all new account openings.
- Scan all existing accounts to ensure no account is held by or linked to any listed individual or entity.
- Follow the freezing procedures for funds, financial assets, or economic resources as per paragraph 6 of the November 16, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office through the Compliance Officer or Principal Officer.
Who it affects
All Primary (Urban) Cooperative Banks, Compliance Officers and Principal Officers of UCBs
Where can we find the complete updated list of individuals and entities?
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?
Banks must freeze funds, financial assets, or economic resources held in such accounts, following the procedures detailed in paragraph 6 of the November 16, 2009 circular.
Do we need to report compliance to RBI?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office.