What changed
RBI has forwarded six new UN Security Council notes (dated Oct 5, Oct 17, Nov 30, Dec 13, Dec 28, and Dec 30, 2011) that update the Al-Qaida Sanctions List. RRBs must now incorporate these changes into their customer screening process. This supersedes the previous list circulated in the January 2, 2012 circular.
What it means for you
RRBs must immediately update their internal sanctions lists to include the newly designated individuals and entities. Failure to screen new and existing accounts against this list could lead to regulatory action. The freezing of assets must follow the detailed procedures in the November 5, 2009 circular, specifically paragraph 6.
What you must do
- Update your internal sanctions list with the six new UN notes (Annex I to VI) provided in this circular.
- Before opening any new account, verify the proposed customer's name against the updated Al-Qaida Sanctions List.
- Scan all existing accounts to identify any matches with the updated list and report findings to your Compliance Officer.
- For any matched accounts, freeze funds and assets as per paragraph 6 of the November 5, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office through your Compliance/Principal Officer.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers and Principal Officers of RRBs, Branch managers handling account opening and KYC
Where can I find the full consolidated sanctions list?
The complete list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml. The six new notes are enclosed with this RBI circular.
What should I do if an existing account matches the list?
You must freeze the funds, financial assets, or economic resources in that account, following the procedure detailed in paragraph 6 of the November 5, 2009 circular. Also, ensure no further transactions are permitted.
Do I need to report back to RBI after updating the list?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this letter to the concerned RBI Regional Office. No other reporting is specified in this circular.