What changed
RBI forwarded a June 15, 2011 UN 1267 Committee note with changes to the consolidated list of Al-Qaida and Taliban-linked individuals/entities. Banks must update this list and ensure compliance with earlier circulars on account screening and asset freezing.
What it means for you
Co-operative banks must immediately update their internal watch lists with the revised UN sanctions list. They are required to screen all new account applicants and review existing accounts to identify any matches, and if found, freeze assets as per the UAPA Order of August 27, 2009 and RBI's October 29, 2009 circular.
What you must do
- Update your bank's consolidated list of terrorist individuals/entities with the latest UN 1267 Committee changes from the June 15, 2011 note.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to ensure none are held by or linked to listed individuals/entities.
- Follow the freezing procedures detailed in paragraph 6 of RBI circular dated October 29, 2009 for any matches found.
- Acknowledge receipt of this circular to your respective RBI Regional Office via the Compliance/Principal Officer.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Compliance Officers/Principal Officers of these banks
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 via a note dated June 15, 2011. The full list is available on the UN website.
What action is required if an existing account matches the list?
Banks must freeze funds, financial assets, or economic resources held in such accounts, following the procedure in paragraph 6 of RBI's October 29, 2009 circular, as per the UAPA Order.
Do we need to report compliance to RBI?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office.