What changed
RBI received a June 23, 2011 note from the UN Security Council's 1267 Committee with changes to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. Banks are required to update their records with this revised list and ensure compliance with earlier circulars on account screening and asset freezing.
What it means for you
Banks must immediately update their internal databases with the latest UNSC list and screen all new account openings against it. Existing accounts must also be scanned to identify any matches, and if found, banks must follow the freezing procedures outlined in the September 17, 2009 circular. Non-compliance could lead to regulatory action.
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the latest UNSC 1267/1822 changes received from RBI.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals/entities.
- Freeze funds, financial assets, or economic resources of designated entities as per paragraph 6 of the September 17, 2009 circular.
- Ensure 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
What is the source of the updated list?
The updated consolidated list comes from the UN Security Council's 1267 Committee, forwarded by the Government of India (Ministry of External Affairs) via a note dated June 23, 2011.
What action is required for existing accounts?
Banks must scan all existing accounts to ensure no account is held by or linked to any entity or individual on the updated list. If found, freezing actions must be taken as per the UAPA Order and earlier RBI circular.
Where can the full consolidated list be accessed?
The complete consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.