What changed
RBI has forwarded a July 15, 2010 UN Security Council 1267 Committee note with changes to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. RRBs must update their records accordingly and ensure no account is linked to any listed entity.
What it means for you
RRBs must immediately update their internal watchlists with the revised UN list and verify all new account openings against it. Existing accounts must be scanned to identify any matches, and if found, funds/assets must be frozen as per the UAPA Order and earlier RBI circular procedures.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UNSC 1267/1822 changes received from the Ministry of External Affairs.
- Screen all new account applicants against the updated list before opening accounts.
- Scan all existing accounts to ensure none are held by or linked to listed individuals/entities.
- Follow the freezing procedures outlined in paragraph 6 of the November 5, 2009 circular for any matches.
- Ensure Compliance Officer/Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers / Principal Officers of RRBs, Branch managers handling account opening and KYC
What is the source of the updated list?
The list is from the UN Security Council's 1267 Committee, forwarded by the Ministry of External Affairs via a note dated July 15, 2010. The full list is available on the UN website.
What action is required if an existing account matches a listed entity?
RRBs must freeze the funds, financial assets, or economic resources held in such accounts, following the procedure detailed in paragraph 6 of the November 5, 2009 circular.
Do we need to report compliance to RBI?
Yes, the Compliance Officer/Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office.