What changed
RBI circulated eight UN Security Council notes from July 2011 to February 2012 updating the 1988 Sanctions List of individuals and entities linked to the Taliban. Urban co-operative banks must incorporate these updates into their screening processes.
What it means for you
Banks must ensure no new account is opened for any listed individual/entity and scan existing accounts for matches. Compliance with the UAPA Order of August 27, 2009, and earlier circulars is mandatory, including freezing of funds and assets as per paragraph 7 of the November 16, 2009 circular.
What you must do
- Update your internal sanctions list with the eight annexes from the UNSCR 1988 Committee notes.
- Screen all new account applications against the updated list before opening accounts.
- Review all existing accounts to identify and report any matches with the sanctions list.
- Follow the freezing procedures outlined in paragraph 7 of the November 16, 2009 circular for any designated individuals/entities.
- Acknowledge receipt of this circular to your Regional Office via the Compliance Officer/Principal Officer.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers and Principal Officers of urban co-op banks
What is the 1988 Sanctions List?
It is a UN Security Council list of individuals and entities associated with the Taliban, updated periodically. Banks must screen customers against this list.
What action is required for existing accounts?
Banks must scan all existing accounts to ensure no account is held by or linked to any listed individual or entity, and take freezing actions as per earlier RBI circulars.
Who should acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the bank must send an acknowledgment to the concerned Regional Office of RBI.