What changed
RBI issued a circular on October 19, 2010, forwarding a Government of India note with updates to the UN Security Council's 1267 Committee consolidated list of individuals and entities linked to Al-Qaida and Taliban. This supersedes the previous list circulated via circular dated September 30, 2010.
What it means for you
Urban Co-operative Banks must immediately update their internal databases with the revised UN list and 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 of August 27, 2009, and RBI's November 16, 2009 circular.
What you must do
- Update the consolidated list of individuals/entities from the UN website and integrate it into your account opening and screening systems.
- Screen all new account applications against the updated list before onboarding.
- Conduct a fresh scan of all existing accounts to identify any matches with the updated list.
- Freeze funds, financial assets, or economic resources of any matched accounts as per paragraph 6 of the November 16, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
Primary (Urban) Co-operative Banks, Compliance Officers / Principal Officers of UCBs
Where can we find the latest consolidated list?
The complete consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What action is required for existing accounts that match the list?
Banks must freeze funds, financial assets, or economic resources or related services held in bank accounts of designated individuals/entities, following the procedure detailed in paragraph 6 of RBI circular dated November 16, 2009.
Do we need to report compliance to RBI?
Yes, the Compliance Officer or Principal Officer of the bank must acknowledge receipt of this circular to the concerned RBI Regional Office.