What changed
RBI has forwarded six new UN Security Council notes (dated April 30 to May 18, 2012) that update 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 screen all new and existing accounts against the revised UN list. Failure to comply could lead to regulatory action, as the UAPA Order of August 27, 2009, mandates strict adherence.
What you must do
- Update your internal sanctions database with the six new UN notes (Annex I-VI) provided by RBI.
- Screen all new account openings against the updated Al-Qaida Sanctions List before onboarding.
- Conduct a fresh scan of all existing accounts to identify any matches with the revised list.
- Follow the freezing procedures outlined in paragraph 7 of RBI's November 16, 2009 circular for any matched accounts.
- Ensure your Compliance Officer acknowledges receipt of this circular to the concerned Regional Office.
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, and the updates were forwarded by the Ministry of External Affairs to RBI.
Do we need to freeze accounts immediately if a match is found?
Yes, follow the freezing procedures detailed in paragraph 7 of RBI's circular dated November 16, 2009, which covers funds, financial assets, and related services.
Where can we access the full sanctions list?
The complete list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.