What changed
RBI issued a circular on August 17, 2010, forwarding a UN Security Council 1267 Committee note dated July 19, 2010, with changes to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. This updates the earlier circular of August 3, 2010, and requires RRBs to incorporate the revised list into their screening processes.
What it means for you
RRBs must immediately update their internal AML/KYC systems with the latest UN consolidated list to prevent any account being held by or linked to designated terrorists. Non-compliance could lead to regulatory action, as the UAPA Order of August 27, 2009, mandates strict adherence. This reinforces the need for robust customer screening and ongoing monitoring.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UN 1267 Committee's July 19, 2010 note, available on the UN website.
- Before opening any new account, verify the proposed customer's name against the updated list.
- Scan all existing accounts to ensure none are held by or linked to listed individuals/entities.
- Follow the procedure laid down in the UAPA Order dated August 27, 2009, for freezing funds, financial assets, or economic resources of designated entities.
- Ensure the Compliance Officer/Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers and Principal Officers of RRBs, AML/KYC teams at RRBs
What is the source of the updated list of terrorist individuals/entities?
The list is the Consolidated List of Individuals and entities linked to Al-Qaida and Taliban, maintained by the UN Security Council's 1267 Committee. The changes were communicated via a note dated July 19, 2010, forwarded by the Government of India (Ministry of External Affairs).
What actions must RRBs take for existing accounts?
RRBs must scan all existing accounts to ensure no account is held by or linked to any entity or individual on the updated list. If a match is found, they must follow the freezing procedures detailed in paragraph 6 of the RBI circular dated November 5, 2009, as per the UAPA Order.
Where can the complete consolidated list be accessed?
The complete details of the consolidated list are available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.