What changed
RBI has forwarded a new UN Security Council 1267 Committee note (dated July 19, 2011) with changes to the consolidated list of Al-Qaida and Taliban-linked individuals and entities. RRBs must now update their internal lists accordingly and ensure compliance with the latest additions.
What it means for you
RRBs face heightened scrutiny to prevent any account being linked to newly designated terrorists. Non-compliance could lead to regulatory action. The circular reinforces the need for rigorous KYC/AML checks and immediate freezing of assets for listed entities, impacting operational processes.
What you must do
- Update the consolidated list of terrorist individuals/entities using the UN website and RBI circular.
- Screen all new account applications against the updated list before opening.
- Scan all existing accounts to identify and report any matches with the list.
- Freeze funds and financial assets of designated individuals/entities as per paragraph 6 of the November 5, 2009 circular.
- Acknowledge receipt of this circular to your respective Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers / Principal Officers of RRBs, Branch managers handling account opening and AML checks
What is the source of the updated list?
The list is based on changes made by the UN Security Council's 1267 Committee, forwarded by the Ministry of External Affairs. The full consolidated list is available on the UN website.
What action is required for existing accounts?
RRBs must scan all existing accounts to ensure no account is held by or linked to any individual or entity on the updated list. If found, freeze assets as per the UAPA Order procedures.
Who should acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of each RRB must acknowledge receipt to the concerned Regional Office of RBI.