What changed
RBI has forwarded three new UN notes (dated July 29, August 12, and August 22, 2011) from the 1267 Committee, which amend the consolidated list of Al-Qaida-linked individuals and entities. RRBs are required to update their records accordingly and ensure compliance with earlier circulars on account screening and asset freezing.
What it means for you
RRBs must immediately update their internal sanctions lists to reflect the latest UN designations. This ensures that no new accounts are opened for listed entities and that existing accounts are reviewed for any links. Failure to comply could lead to regulatory action and reputational risk.
What you must do
- Update the consolidated list of terrorist individuals/entities with the three new UN notes (July 29, August 12, August 22, 2011).
- Screen all new account openings against the updated list before onboarding customers.
- Scan all existing accounts to identify and freeze any accounts linked to listed individuals/entities.
- Follow the freezing procedures outlined in paragraph 6 of the November 5, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers / Principal Officers of RRBs, Branch managers handling account opening and monitoring
What is the source of the updated list?
The updates come from three notes issued by the Chairman of 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 entity or individual on the updated list. If found, freezing action must be taken as per the UAPA Order and earlier RBI circular.
Who should acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of each RRB must acknowledge receipt to their respective RBI Regional Office.