What changed
RBI forwarded seven UN notes from February to April 2012 updating the Al-Qaida sanctions list. Urban co-operative banks must now incorporate these changes into their customer screening processes.
What it means for you
Banks must immediately update their internal sanctions lists and verify that no new or existing customer matches the updated UN designations. Failure to comply could lead to regulatory action and reputational risk.
What you must do
- Update your internal sanctions database with the seven UN notes (Annex I to VII) from February-April 2012.
- Screen all new account applications against the updated Al-Qaida list before opening accounts.
- Review all existing accounts to identify and freeze any linked to listed individuals or entities.
- Follow the freezing procedures outlined in paragraph 7 of the November 16, 2009 circular.
- Acknowledge receipt of this circular to your Regional Office through the Compliance Officer.
Who it affects
Primary (Urban) Co-operative Banks, Compliance Officers, Principal Officers
What is the source of the updated sanctions list?
The list comes from the UN Security Council's 1267/1989 Committee, forwarded by the Ministry of External Affairs via seven notes dated between February 23 and April 13, 2012.
What action is required for existing accounts?
Banks must scan all existing accounts to ensure none are held by or linked to any entity or individual on the updated Al-Qaida sanctions list.
Where can I find the complete sanctions list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.