What changed
RBI updated the Al-Qaida sanctions list per UNSCR 1267/1989 Committee changes received from the Ministry of External Affairs. Banks must now use the revised list for customer screening and account freezing.
What it means for you
Banks must immediately update their internal sanctions lists and ensure no new accounts are opened for listed individuals/entities. Existing accounts must be scanned, and any matches must be frozen as per earlier UAPA orders. Non-compliance could lead to regulatory action.
What you must do
- Update the UN Al-Qaida sanctions list in your systems using the latest UN website version.
- Screen all new account applications against the updated list before account opening.
- Scan all existing accounts to identify and freeze any linked to listed individuals/entities.
- Follow the freezing procedures detailed in RBI circulars of October and November 2009.
- Have your Compliance Officer acknowledge receipt of this circular to the concerned RBI Regional Office.
Who it affects
Regional Rural Banks (RRBs), State Co-operative Banks, Central Co-operative Banks, Compliance Officers and Principal Officers of these banks
What is the source of the updated sanctions list?
The list is from the UN Security Council's 1267/1989 Committee's Al-Qaida Sanctions List, available on the UN website.
What action is required for existing accounts?
Banks must scan all existing accounts to ensure none are held by or linked to listed individuals/entities, and freeze any such accounts as per earlier RBI circulars.
Who should acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the bank must acknowledge receipt to the concerned RBI Regional Office.