What changed
RBI received updated Al-Qaida sanctions list from the UN Security Council's 1267/1989 Committee via Government of India notes dated April 30 and May 3, 2012. Banks must now incorporate these changes into their screening processes.
What it means for you
Banks must ensure no new accounts are opened for listed individuals/entities and scan all existing accounts for matches. Non-compliance could lead to regulatory action, as the UAPA order requires strict adherence.
What you must do
- Update the UN Al-Qaida sanctions list in your systems immediately using the enclosed government notes.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and report any linked to listed individuals/entities.
- Freeze funds and assets of designated entities as per paragraph 6 of the September 17, 2009 circular.
- Ensure Compliance Officer acknowledges receipt of this circular.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
What is the source of the updated sanctions list?
The list comes from the UN Security Council's 1267/1989 Committee, forwarded by the Ministry of External Affairs via notes dated April 30 and May 3, 2012.
What action is required for existing accounts?
Banks must scan all existing accounts to ensure none are held by or linked to individuals/entities on the updated Al-Qaida sanctions list.
How should we freeze assets of designated entities?
Follow the procedure detailed in paragraph 6 of RBI circular DBOD.AML.BC. No. 44/14.01.001/2009-10 dated September 17, 2009.