What changed
RBI issued a circular on January 24, 2012, enclosing the Ministry of External Affairs Order of November 4, 2011, which implements UN Security Council Resolution 1929 (2010) on non-proliferation. RRBs are now required to actively screen all account applications and existing transactions against the listed individuals/entities.
What it means for you
RRBs must enhance their AML/KYC checks to include the UN sanctions list. Failure to identify and report matching accounts could lead to regulatory action. This aligns Indian RRBs with global non-proliferation efforts and strengthens the financial system's integrity.
What you must do
- Cross-check all new account opening applications and existing account transactions against the individuals/entities listed in the Gazette of India notification.
- Report any accounts that match or resemble the listed entities to RBI and Financial Intelligence Unit-India (FIU-IND) immediately.
- Ensure the Compliance Officer/Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers and Principal Officers of RRBs, AML/KYC teams at RRBs
What is the source of the sanctions list we need to check against?
The list is from the Ministry of External Affairs Order dated November 4, 2011, published in the Gazette of India, implementing UN Security Council Resolution 1929 (2010) on non-proliferation.
What should we do if we find a match or resemblance?
You must report those accounts to both the Reserve Bank of India and the Financial Intelligence Unit-India (FIU-IND) immediately.
Who needs to acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the RRB must acknowledge receipt to the concerned RBI Regional Office.