What changed
RBI has received from the Government of India (Ministry of External Affairs) a new UN Security Council 1267 Committee note dated September 9, 2010, which updates the consolidated list of individuals and entities linked to Al-Qaida and Taliban. Banks must now use this updated list for screening.
What it means for you
Banks must immediately update their internal sanctions lists with the latest UN 1267 consolidated list. Failure to screen new accounts or review existing ones against this list could lead to regulatory action. Freezing of funds and assets must follow the procedures outlined in the earlier September 17, 2009 circular.
What you must do
- Update your internal sanctions database with the latest UN 1267 consolidated list available on the UN website.
- Screen all new account applications against the updated list before onboarding.
- Conduct a retrospective scan of all existing accounts to identify any matches with the updated list.
- Freeze funds and assets of any matched individuals/entities as per paragraph 6 of the September 17, 2009 circular.
- Ensure compliance with the UAPA Order dated August 27, 2009, and acknowledge receipt of this circular.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
What is the source of the updated list?
The updated list comes from the UN Security Council's 1267 Committee, forwarded by the Ministry of External Affairs. The full list is on the UN website.
Do we need to freeze accounts immediately upon finding a match?
Yes, follow the freezing procedures detailed in paragraph 6 of the September 17, 2009 circular. This includes freezing funds, financial assets, and economic resources.
Is this a one-time check or ongoing?
This is an ongoing requirement. Banks must continuously update their lists and screen new accounts. Existing accounts must be scanned each time the list is updated.