What changed
RBI forwarded a March 10, 2011 UN Security Council 1267 Committee note with changes to the consolidated list of Al-Qaida/Taliban-linked individuals and entities. This updates the previous list circulated via circular dated February 11, 2011.
What it means for you
Banks must immediately update their internal screening databases with the revised UN list. Failure to identify and freeze accounts of designated entities could lead to regulatory action and reputational risk. The circular reinforces existing obligations under the UAPA Order of August 27, 2009.
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the latest UN 1267 Committee changes.
- 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 revised list.
- Freeze funds, financial assets, or economic resources of any matched accounts as per paragraph 6 of the September 17, 2009 circular.
- Ensure your Compliance Officer/Principal Officer acknowledges receipt of this circular.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
Where can we find the complete updated consolidated list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What action is required if we find an existing account linked to a listed entity?
You must freeze the funds, financial assets, or economic resources held in that account, following the procedure detailed in paragraph 6 of the September 17, 2009 circular.
Do we need to acknowledge receipt of this circular?
Yes, the Compliance Officer or Principal Officer should acknowledge receipt of this circular letter.