What changed
RBI issued this circular on May 25, 2012, updating the Al-Qaida Sanctions List based on a May 10, 2012 UN Security Council committee note. It replaces the previous list from the May 23, 2012 circular. Banks must now use the latest list for customer screening.
What it means for you
RRBs and co-op banks must immediately update their internal sanctions lists to reflect the latest UN additions. This ensures compliance with UAPA, 1967, and prevents financing of designated terrorists. Non-compliance could lead to regulatory action and reputational risk.
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.
- Review all existing accounts to identify any matches with the updated list.
- Follow the freezing procedures outlined in earlier RBI circulars for any matched accounts.
- Have your Compliance Officer acknowledge receipt of this circular to the concerned 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 comes from the UN Security Council's 1267/1989 Committee Al-Qaida Sanctions List, as communicated by the Ministry of External Affairs via a note dated May 10, 2012.
Do we need to freeze accounts immediately if a match is found?
Yes, follow the freezing procedures detailed in paragraph 6 of the earlier circulars referenced (dated November 5, 2009 and October 29, 2009) for designated individuals/entities.
Where can we find the complete updated list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.