What changed
RBI has circulated an updated Al-Qaida Sanctions List from the UN Security Council's 1267/1989 Committee, as forwarded by the Ministry of External Affairs via a note dated January 26, 2012. This updates the list previously circulated in the March 1, 2012 circular. Banks must now use this updated list for customer screening.
What it means for you
Urban co-operative 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 the UAPA Order of August 27, 2009. Non-compliance could lead to regulatory action.
What you must do
- Update your bank's internal database with the latest UN Al-Qaida Sanctions List from the provided UN website.
- Screen all new account applications against the updated list before opening accounts.
- Conduct a thorough review of all existing accounts to identify any linked to listed individuals/entities.
- Freeze any identified accounts and related assets as per paragraph 7 of the November 16, 2009 circular.
- Ensure the Compliance Officer/Principal Officer acknowledges receipt of this circular to the concerned Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers and Principal Officers of these banks, Branch managers handling account opening and monitoring
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, forwarded by the Ministry of External Affairs via a note dated January 26, 2012.
What action is required for existing accounts that match the list?
Banks must freeze the funds, financial assets, or economic resources of such accounts, following the procedure in paragraph 7 of the November 16, 2009 circular.
Who needs to acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the bank must send an acknowledgment to the respective Regional Office of RBI.