What changed
RBI has forwarded a new update from the UN Security Council's 1267 Committee, received via the Ministry of External Affairs, with changes to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. This supersedes the previous list circulated in the August 30, 2010 circular. RRBs must now incorporate these latest additions into their screening processes.
What it means for you
RRBs face heightened compliance risk: any failure to screen new or existing accounts against this updated list could lead to regulatory action. The directive reinforces the need for robust AML/KYC checks, especially for accounts that may be linked to designated terrorists. Banks must also be ready to freeze funds and assets as per the UAPA Order of August 27, 2009, adding operational urgency.
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the latest UNSCR 1267/1822 changes from the enclosed note.
- Before opening any new account, verify the proposed customer's name against the updated list.
- Scan all existing accounts to identify any matches with the updated list and report findings.
- If a match is found, freeze funds, financial assets, or economic resources as per paragraph 6 of the November 5, 2009 circular.
- 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?
The list comes from the UN Security Council's 1267 Committee, forwarded by the Government of India (Ministry of External Affairs) via a note dated August 24, 2010.
Do we need to check only new accounts?
No. You must check both new accounts before opening and all existing accounts to ensure no account is held by or linked to any listed entity or individual.
What action is required if we find a match?
You must freeze the funds, financial assets, or economic resources held in the account, following the procedure detailed in paragraph 6 of the November 5, 2009 circular.