What changed
RBI has circulated an updated Al-Qaida Sanctions List from the UN Security Council's 1267/1989 Committee, received via the Ministry of External Affairs. Banks must now use this revised list for customer screening and account monitoring.
What it means for you
Banks must immediately update their internal sanctions databases to include the latest UN-listed individuals and entities. Failure to screen new accounts or review existing ones could lead to regulatory action and non-compliance with anti-money laundering obligations.
What you must do
- Update your customer screening systems with the latest UN Al-Qaida Sanctions List from the provided UN website.
- Screen all new account applications against the updated list before opening accounts.
- Conduct a retrospective review of all existing accounts to identify any matches with the updated list.
- Follow the freezing procedures outlined in earlier RBI circulars for any matched accounts.
- Ensure your Compliance Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Who it affects
State Co-operative Banks, Central Co-operative Banks, Regional Rural Banks, Compliance Officers of these banks
What is the source of the updated sanctions list?
The list is from the UN Security Council's 1267/1989 Al-Qaida Sanctions Committee, forwarded by the Ministry of External Affairs to RBI.
Do we need to check only new accounts or existing ones too?
Both. You must screen all new accounts before opening and scan all existing accounts to ensure no account is linked to listed individuals or entities.
What action is required if we find a match in an existing account?
Follow the freezing of funds and assets procedures detailed in paragraph 6 of the earlier RBI circulars referenced in the notification.