What changed
RBI has circulated seven UN Security Council notes from July 2011 to January 2012 that update the 1988 Sanctions List of individuals and entities linked to the Taliban. NBFCs must now incorporate these updates into their compliance checks.
What it means for you
NBFCs must immediately update their internal sanction lists and ensure no new account is opened for any person or entity on the updated list. Existing accounts must also be reviewed to identify and freeze any linked accounts, reinforcing anti-terror financing compliance.
What you must do
- Update your internal sanctions database with the latest UN 1988 Sanctions List from the UN website.
- Screen all new account applications against the updated list before onboarding.
- Conduct a one-time review of all existing accounts to identify any matches with the list.
- Freeze and report any accounts linked to listed individuals or entities as per UAPA guidelines.
Who it affects
All Non-Banking Financial Companies (NBFCs), Residuary Non-Banking Companies (RNBCs)
What is the 1988 Sanctions List?
It is a UN Security Council list of individuals and entities associated with the Taliban, updated periodically. NBFCs must check this list before opening accounts and for existing accounts.
Where can I find the complete updated list?
The full list is available on the UN website at http://www.un.org/sc/committees/1988/list.shtml.
What should I do if I find a match in an existing account?
You must immediately freeze the account and report it to the RBI and other relevant authorities as per Section 51-A of UAPA, 1967.