What changed
RBI received updated UN Security Council 1267 Committee notes (June 23 and July 19, 2011) with changes to the Al-Qaida and Taliban consolidated list. All PSOs must now use this updated list for customer screening and freeze assets as per earlier circular DBOD.AML.BC. No. 44/14.01.001/2009-10.
What it means for you
Banks and payment operators must immediately update their internal sanctions lists with the latest UN 1267 changes. Failure to screen new customers or review existing accounts against this list could lead to regulatory action. Freezing of funds and assets of designated entities is mandatory as per the UAPA Order.
What you must do
- Update your internal consolidated list of UN 1267 designated individuals/entities with the latest changes from June 23 and July 19, 2011.
- Screen all new customer applications against the updated list before opening accounts or registering services.
- Conduct a one-time scan of all existing accounts to identify any linked to listed entities.
- Freeze funds, financial assets, or economic resources of any matched accounts as per paragraph 6 of the September 17, 2009 circular.
- Ensure your Nodal/Principal Officer acknowledges receipt of this circular.
Who it affects
All payment system operators (PSOs) authorized under PSS Act, 2007, Banks offering payment services, Compliance and AML teams, Nodal/Principal Officers of PSOs
What is the UN 1267 consolidated list?
It is a list maintained by the UN Security Council's 1267 Committee of individuals and entities associated with Al-Qaida and Taliban, updated periodically. RBI requires PSOs to use this list for customer screening.
What action is required if a customer matches the list?
You must freeze the customer's funds, financial assets, or economic resources and related services as per the procedure in paragraph 6 of RBI circular DBOD.AML.BC. No. 44/14.01.001/2009-10 dated September 17, 2009.
Where can I find the complete consolidated list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. RBI also circulates updates to PSOs.