What changed
RBI issued a circular on March 3, 2011, referencing a January 19, 2011 UN Security Council 1267 Committee note with changes to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. RRBs must update their records with this revised list and ensure compliance with earlier UAPA Order procedures.
What it means for you
RRBs must proactively screen both new and existing customers against the updated UN terror list to prevent any association with designated entities. Non-compliance could lead to regulatory action. The circular reinforces the need for strict adherence to the UAPA Order of August 27, 2009, including freezing of funds and assets of listed individuals/entities.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the latest UNSC 1267 Committee changes.
- Before opening any new account, verify the proposed customer's name against the updated list.
- Scan all existing accounts to identify and report any linked to listed individuals/entities.
- Follow the freezing procedures detailed in paragraph 6 of the November 5, 2009 circular for any designated accounts.
- Ensure 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 of RRBs, Principal Officers of RRBs
What is the source of the updated list of terrorist individuals/entities?
The list is based on changes made by the UN Security Council's 1267 Committee, as communicated via a note dated January 19, 2011 from the Government of India (Ministry of External Affairs). The full consolidated list is available on the UN website.
What actions are required for existing accounts that match the list?
RRBs must freeze the funds, financial assets, or economic resources held in such accounts, following the procedures detailed in paragraph 6 of the RBI circular dated November 5, 2009, which references the UAPA Order.
Who should acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the RRB should acknowledge receipt to the concerned RBI Regional Office.