What changed
RBI issued a circular on May 30, 2012, enclosing the Ministry of External Affairs order of November 4, 2011, implementing UN Security Council Resolution 1929 (2010) on non-proliferation. Banks must now verify all new and existing accounts against the listed individuals/entities and report any matches.
What it means for you
Urban co-operative banks must strengthen their KYC and transaction monitoring to screen against the sanctions list. Non-compliance could lead to regulatory action, and banks need to ensure their compliance officers acknowledge receipt of this circular to the regional RBI office.
What you must do
- Cross-check all new account applications and existing account transactions against the individuals/entities listed in the November 2011 Gazette.
- Report any accounts matching the list to RBI and Financial Intelligence Unit – India immediately.
- Ensure the Compliance Officer/Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers and Principal Officers of these banks
What is the source of the list we need to check against?
The list is from the Ministry of External Affairs Order dated November 4, 2011, published in the Gazette of India, implementing UNSCR 1929 (2010) on non-proliferation.
What should we do if we find a match?
Report the account to both the Reserve Bank of India and the Financial Intelligence Unit – India.
Is there a deadline for acknowledging this circular?
The circular requires the Compliance Officer/Principal Officer to acknowledge receipt to the concerned RBI Regional Office, but no specific deadline is mentioned in the source.