What changed
RBI has forwarded a note from the Chairman of the UN Security Council's 1267 Committee, dated August 24, 2010, which includes changes to the consolidated list of terrorist individuals and entities linked to Al-Qaida and Taliban. This updates the previous circular from August 13, 2010, requiring UCBs to incorporate these changes into their screening processes.
What it means for you
UCBs must immediately update their internal databases with the revised UN list to ensure no new accounts are opened for listed entities. Existing accounts must be scanned for matches, and any identified accounts must be frozen as per the UAPA Order procedures outlined in the November 16, 2009 circular. Non-compliance could lead to regulatory action.
What you must do
- Update the consolidated list of terrorist individuals/entities from the UN website and integrate it into your account opening and screening systems.
- Screen all existing accounts to identify any linked to listed individuals/entities and report findings to your Compliance Officer.
- Freeze funds, financial assets, or economic resources of designated entities as per paragraph 6 of the November 16, 2009 circular.
- Ensure the Compliance Officer/Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers and Principal Officers of UCBs, Branch managers handling account opening and KYC processes
Where can we find the updated consolidated list?
The complete consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. RBI has also enclosed a copy of the UN note with this circular.
What action is required for existing accounts that match the list?
Banks must freeze the funds, financial assets, or economic resources held in such accounts, following the procedures detailed in paragraph 6 of the November 16, 2009 circular.
Do we need to acknowledge receipt of this circular?
Yes, the Compliance Officer or Principal Officer of the bank must acknowledge receipt to the concerned RBI Regional Office.