What changed
RBI has circulated an updated Al-Qaida Sanctions List from the UN Security Council's 1267/1989 Committee, received via the Ministry of External Affairs on May 7, 2012. Banks must now use this latest list for customer screening and compliance.
What it means for you
Banks must immediately update their internal sanctions lists and screen all new and existing customers against the revised UN list. Failure to identify or freeze accounts linked to designated individuals/entities could lead to regulatory action and reputational risk.
What you must do
- Update your internal sanctions database with the latest Al-Qaida Sanctions List from the UN website.
- Screen all new account applications against the updated list before onboarding.
- Scan all existing accounts to identify any matches with the updated list.
- Freeze funds and assets of matched accounts as per paragraph 6 of the September 17, 2009 circular.
- Ensure your Compliance Officer acknowledges receipt of this circular.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
Where can I find the complete updated sanctions list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.
What action is required for existing accounts that match the list?
You must freeze the funds, financial assets, or economic resources of those accounts as detailed in paragraph 6 of RBI circular DBOD.AML.BC. No. 44/14.01.001/2009-10 dated September 17, 2009.
Who should confirm receipt of this circular?
The Compliance Officer or Principal Officer of your bank must acknowledge receipt of this circular.