What changed
RBI has communicated an update to the UN Security Council's Al-Qaida Sanctions List, received via the Ministry of External Affairs. This supersedes the previous list circulated on March 12, 2012. Banks must now use this updated list for all customer screening and compliance actions.
What it means for you
Banks must immediately incorporate the revised sanctions list into their account opening and ongoing monitoring processes. Failure to identify and freeze accounts linked to listed individuals/entities could lead to regulatory penalties. This reinforces the government's commitment to combating terrorist financing under UAPA, 1967.
What you must do
- Update your internal sanctions screening database with the latest UN Al-Qaida list from the UN website.
- Before opening any new account, verify the proposed customer's name against the updated list.
- Conduct a fresh scan of all existing accounts to identify any matches with the revised list.
- If a match is found, immediately freeze the account and follow the procedure outlined in RBI circulars of October 29, 2009 and November 5, 2009.
- Ensure your Compliance Officer/Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Who it affects
State Co-operative Banks, Central Co-operative Banks, Regional Rural Banks (RRBs), Compliance Officers / 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 (Al-Qaida Sanctions List), forwarded by the Ministry of External Affairs. The full list is available on the UN website.
What action is required if an existing account matches the list?
You must freeze the funds, financial assets, or economic resources in that account immediately, following the procedure detailed in paragraph 6 of the earlier RBI circulars dated October 29, 2009 and November 5, 2009.
Do we need to acknowledge receipt of this circular?
Yes, the Compliance Officer or Principal Officer must send an acknowledgment to the concerned RBI Regional Office.