What changed
RBI issued a circular on June 7, 2011, forwarding four new UN Security Council notes (dated May 4, 11, 16, and 27, 2011) that update the consolidated list of individuals and entities linked to Al-Qaida and Taliban. Banks must now incorporate these changes into their screening processes.
What it means for you
Co-operative banks must immediately update their internal databases with the revised UN sanctions list and ensure no new account is opened for any listed entity. Existing accounts must be scanned to identify any matches, and if found, freezing actions must follow the procedures outlined in the earlier UAPA Order of August 27, 2009.
What you must do
- Update the consolidated list of terrorist individuals/entities with the four new UN notes received from the Ministry of External Affairs.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals or entities.
- Follow the freezing procedures detailed in paragraph 6 of the October 29, 2009 circular for any matches found.
- Ensure the Compliance Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Who it affects
All State Co-operative Banks, All Central Co-operative Banks, Compliance Officers of co-operative banks, Principal Officers of co-operative banks
What is the source of the updated list?
The list is based on changes made by the UN Security Council's 1267 Committee, forwarded via four notes from the Ministry of External Affairs dated May 4, 11, 16, and 27, 2011.
What should we do if we find an existing account linked to a listed entity?
You must freeze the funds, financial assets, or economic resources in that account as per the procedure detailed in paragraph 6 of the RBI circular dated October 29, 2009.
Where can we access the full consolidated list?
The complete list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.