What changed
RBI forwarded a July 19, 2011 UN Security Council 1267 Committee note with changes to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. This updates the previous list circulated via circular dated July 4, 2011. Banks must now use this revised list for compliance.
What it means for you
Co-operative banks must immediately update their internal screening databases with the revised UN consolidated list. Failure to screen new accounts or review existing ones against this list could lead to regulatory action. The circular reinforces the strict freezing procedures under the UAPA Order of August 27, 2009.
What you must do
- Update your internal AML/KYC systems with the latest consolidated list from the UN website (http://www.un.org/sc/committees/1267/consolist.shtml).
- Screen all new account applications against the updated list before onboarding.
- Conduct a fresh scan of all existing accounts to identify any matches with the revised list.
- If a match is found, immediately freeze funds/assets as per paragraph 6 of the October 29, 2009 circular and report to RBI Regional Office.
- Ensure Compliance Officer/Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Who it affects
State Co-operative Banks (StCBs), District Central Co-operative Banks (DCCBs), Compliance Officers / Principal Officers of co-operative banks
Where can I find the latest consolidated list of terrorist individuals/entities?
The complete consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. RBI has also enclosed the changes in the circular.
What action is required if an existing account matches a name on the list?
You must immediately freeze the funds, financial assets, or economic resources in that account, following the procedure detailed in paragraph 6 of RBI circular dated October 29, 2009, and comply with the UAPA Order.
Do I need to acknowledge receipt of this circular?
Yes, the Compliance Officer/Principal Officer must send an acknowledgment to the concerned RBI Regional Office.