What changed
RBI issued a circular on March 23, 2011, requiring PSOs to update the consolidated list of individuals/entities linked to Al-Qaida and Taliban as per UN Security Council resolutions. PSOs must check new customers against this list and scan existing accounts for matches.
What it means for you
Banks and payment operators must integrate this list into their customer onboarding and ongoing monitoring processes. Non-compliance could lead to regulatory action, and freezing of assets must follow the procedure in the September 2009 circular.
What you must do
- Update your internal systems with the latest consolidated UN terror list from the UN website.
- Screen all new customers against the list before opening accounts or offering services.
- Scan all existing accounts to identify and report any matches with listed individuals or entities.
- Follow the freezing procedure outlined in paragraph 6 of the September 17, 2009 circular for any matches.
- Ensure your nodal officer acknowledges receipt of this circular.
Who it affects
All payment system operators authorized under the PSS Act, 2007, Banks and financial institutions offering payment services, Compliance and AML teams
What list do we need to check customers against?
The consolidated list of individuals and entities linked to Al-Qaida and Taliban, maintained by the UN Security Council's 1267 Committee, available on the UN website.
What action is required for existing accounts?
Scan all existing accounts to ensure no account is held by or linked to any listed individual or entity, and follow the freezing procedure from the September 2009 circular if needed.
Who should acknowledge receipt of this circular?
The nodal officer or principal officer of the payment system operator must acknowledge receipt.