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. Banks must now use this revised list for account screening and freezing actions, replacing the previous list from the May 11, 2012 circular.
What it means for you
Banks must immediately update their internal sanctions lists and screen all new account openings against the latest UN list. Existing accounts must be scanned to identify and freeze any linked to newly designated individuals or entities, following the UAPA Order of August 27, 2009. Non-compliance could lead to regulatory action and reputational risk.
What you must do
- Update your internal sanctions 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 fresh scan of 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 compliance officers acknowledge receipt of this circular to RBI.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions, Compliance Officers and Principal Officers
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.
What actions are required for existing accounts?
Banks must scan all existing accounts to ensure none are held by or linked to individuals or entities on the updated list, and freeze any such accounts as per the UAPA Order.
Where can I find the complete sanctions list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.