What changed
RBI issued a circular on June 17, 2011, forwarding a UN Security Council 1267 Committee note dated June 10, 2011, with changes to the consolidated list of terrorist individuals/organisations. RRBs must now update their records accordingly and ensure compliance with earlier instructions from November 2009.
What it means for you
RRBs must immediately update their internal databases with the revised UN list to prevent any dealings with designated terrorists. This reinforces the obligation to screen all new and existing customers, and to freeze accounts of listed entities as per the UAPA Order. Non-compliance could lead to regulatory action.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UNSC 1267 Committee's latest changes.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and report any matches with the list.
- Follow the freezing procedures outlined in paragraph 6 of the November 5, 2009 circular for any matched accounts.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers/Principal Officers of RRBs
What is the source of the updated list?
The list is from the UN Security Council's 1267 Committee, forwarded by the Ministry of External Affairs. Full details are on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What actions are required for existing accounts?
RRBs must scan all existing accounts to ensure no account is held by or linked to any listed individual or entity. If found, freezing of funds and assets must follow the procedure in paragraph 6 of the November 5, 2009 circular.
Who should acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of each RRB must send an acknowledgment to the concerned RBI Regional Office.