What changed
RBI issued this circular on May 22, 2012, to communicate updates to the UNSCR 1267/1989 Al-Qaida Sanctions List received from the Ministry of External Affairs. It replaces the earlier list circulated on May 11, 2012, and requires banks to immediately incorporate the changes.
What it means for you
Banks must ensure no new account is opened for any individual or entity on the updated sanctions list, and all existing accounts must be scanned for matches. Compliance with the UAPA Order of August 27, 2009, and earlier RBI circulars is mandatory, including freezing of funds and assets of designated entities.
What you must do
- Update your internal sanctions list with the latest UN Al-Qaida list from the UN website.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals/entities.
- Freeze funds and assets of matched accounts as per paragraph 6 of earlier circulars.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
State Co-operative Banks, Central Co-operative Banks, Regional Rural Banks, Compliance Officers/Principal Officers
What is the source of the updated sanctions list?
The list is the UN Security Council's 1267/1989 Committee's Al-Qaida Sanctions List, provided by the Ministry of External Affairs. The full list is available on the UN website.
Do we need to check only new accounts or existing ones too?
Both. You must ensure no new account is opened for a listed entity, and you must scan all existing accounts to identify any linked to the list.
What action is required if we find a match in an existing account?
Follow the freezing procedures detailed in paragraph 6 of the earlier circulars referenced (dated October 29, 2009, and November 5, 2009) to freeze funds, financial assets, or economic resources.