What changed
RBI issued a circular on May 30, 2012, forwarding a UN Security Council Committee update to the Al-Qaida Sanctions List. Banks must incorporate these changes into their customer screening processes. This follows a previous circular from May 25, 2012, and aligns with the UAPA Order of August 27, 2009.
What it means for you
RRBs and co-op banks must immediately update their internal sanctions lists to include the latest UN-designated individuals and entities linked to Al-Qaida. Failure to screen new and existing accounts against this list could lead to regulatory non-compliance. Banks must also freeze funds and assets of any matched accounts as per earlier UAPA guidelines.
What you must do
- Update your internal sanctions list with the latest UN Al-Qaida Sanctions List from the UN website.
- Screen all new account applications against the updated list before opening accounts.
- Conduct a retrospective scan of all existing accounts to identify any matches with the list.
- Freeze funds, financial assets, or economic resources of any matched individuals/entities as per paragraph 6 of earlier circulars.
- Ensure your Compliance Officer/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 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, following the procedure detailed in paragraph 6 of the earlier circulars referenced (dated October 29, 2009, and November 5, 2009).
Who needs to acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of each RRB and co-op bank must acknowledge receipt to the concerned RBI Regional Office.