What changed
RBI forwarded eight new UN Security Council 1267 Committee notes (dated Aug 6, 2010 to Dec 17, 2010) updating the consolidated list of individuals/entities linked to Al-Qaida and Taliban. RRBs must now incorporate these changes into their screening lists and ensure compliance with the UAPA Order of August 27, 2009.
What it means for you
RRBs face heightened scrutiny: they must update their internal watchlists immediately and verify every new and existing customer against the revised UN list. Failure to freeze assets of designated persons as per the November 2009 circular could invite regulatory action. This reinforces the government's zero-tolerance stance on terror financing.
What you must do
- Update your consolidated list of terrorist individuals/entities with the eight new UN annexes provided.
- Screen all new account openings against the updated list before onboarding.
- Scan all existing accounts to identify any matches with the revised list.
- Freeze funds/assets of any matched accounts as per paragraph 6 of the November 5, 2009 circular.
- Ensure your Compliance Officer acknowledges receipt of this letter to the respective RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers / Principal Officers of RRBs, Branch managers handling account opening and monitoring
What is the source of the updated list?
The list comes from UN Security Council's 1267 Committee notes forwarded by the Ministry of External Affairs. The full consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What action is required if we find a match in existing accounts?
You must freeze the funds, financial assets, or economic resources held in those accounts, following the procedure detailed in paragraph 6 of the November 5, 2009 circular.
Do we need to acknowledge receipt of this circular?
Yes, the Compliance Officer/Principal Officer must acknowledge receipt of this letter to the concerned RBI Regional Office.