What changed
RBI issued this circular on June 19, 2012, updating the Al-Qaida Sanctions List based on a May 25, 2012 note from the UN Security Council's 1267/1989 Committee. It replaces the earlier list from the May 23, 2012 circular.
What it means for you
Banks must immediately update their internal sanctions lists and ensure no new accounts are opened for listed individuals/entities. Existing accounts must be scanned, and any matches must be frozen as per the UAPA Order of August 27, 2009.
What you must do
- Update the Al-Qaida Sanctions List using the UN website link provided.
- Screen all new account applicants against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals/entities.
- Freeze funds and assets of designated entities as per paragraph 6 of the September 17, 2009 circular.
- Ensure Compliance Officer/Principal Officer acknowledges receipt of this circular.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
What is the source of the updated sanctions list?
The list is from the UN Security Council's 1267/1989 Committee's Al-Qaida Sanctions List, available on the UN website.
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 list.
Who must acknowledge this circular?
The Compliance Officer or Principal Officer of each bank or financial institution must acknowledge receipt.