What changed
RBI has circulated the latest UN Security Council 1267/1989 Committee's Al-Qaida Sanctions List updates to all Regional Rural Banks and State/Central Co-operative Banks. Banks must now use this updated list for customer screening and account monitoring.
What it means for you
Banks must immediately update their internal sanctions databases with the new Al-Qaida list. Failure to screen new and existing accounts could lead to regulatory action. The circular reinforces the strict compliance requirements under UAPA, 1967, including freezing of assets for listed entities.
What you must do
- Update your bank's sanctions list with the latest UNSCR 1267/1989 Al-Qaida list from the UN website.
- Screen all new account applications against the updated list before opening accounts.
- Conduct a one-time review of all existing accounts to identify any matches with the list.
- Freeze funds and assets of any matched individuals/entities as per paragraph 6 of earlier UAPA circulars.
- Ensure Compliance/Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Who it affects
Regional Rural Banks (RRBs), State Co-operative Banks, Central Co-operative Banks, Compliance Officers/Principal Officers of these banks
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, 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?
Banks must freeze the funds, financial assets, or economic resources of such accounts as detailed in paragraph 6 of the earlier UAPA circulars referenced in the RBI directive.
Who needs to acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of each RRB and co-op bank must send an acknowledgment to the concerned RBI Regional Office.