What changed
RBI issued a circular on August 18, 2010, forwarding updates to the UNSC 1267 consolidated list of terrorist individuals/entities linked to Al-Qaida and Taliban, based on notes from the UN Security Council's 1267 Committee dated July 28 and July 30, 2010. Banks must now use this updated list for account screening and compliance.
What it means for you
Co-operative banks must immediately update their internal sanctions lists and screen all new and existing accounts against the revised UNSC 1267 list. Failure to identify and freeze assets of designated individuals/entities could lead to regulatory action. This reinforces the strict compliance required under the UAPA Order of August 27, 2009.
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the latest UNSC 1267 changes from the July 2010 notes.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals/entities and report findings.
- Follow the freezing procedures for funds and assets as per paragraph 6 of the October 29, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office via the Compliance Officer.
Who it affects
State Co-operative Banks, Central Co-operative Banks, Compliance Officers/Principal Officers of co-operative banks
What is the UNSC 1267 consolidated list?
It is a list maintained by the UN Security Council's 1267 Committee of individuals and entities linked to Al-Qaida and Taliban, which RBI mandates banks to use for screening accounts.
What action is required if an existing account matches the list?
Banks must freeze the funds, financial assets, or economic resources in that account as per the procedures detailed in paragraph 6 of RBI's circular dated October 29, 2009.
Where can I find the complete consolidated list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.