What changed
RBI has forwarded a June 21, 2012 UN Security Council update to the Al-Qaida Sanctions List under Section 51-A of UAPA, 1967. Banks must now incorporate these changes into their customer screening processes.
What it means for you
Banks must immediately update their internal lists of sanctioned individuals/entities linked to Al-Qaida. This ensures compliance with anti-money laundering and counter-terrorism financing obligations, and failure to screen could lead to regulatory action.
What you must do
- Update the UN Al-Qaida Sanctions List using the latest UN website or RBI circular.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any matches with the updated list.
- Freeze funds and assets of any matched individuals/entities as per UAPA Order procedures.
- Acknowledge receipt of this circular to your RBI Regional Office.
Who it affects
Regional Rural Banks (RRBs), State Co-operative Banks, Central Co-operative Banks, Compliance Officers/Principal Officers
What is the source of the updated sanctions list?
The list is from the UN Security Council's 1267/1989 Committee Al-Qaida Sanctions List, forwarded by the Ministry of External Affairs.
What actions are required for existing accounts?
Banks must scan all existing accounts to ensure none are held by or linked to listed individuals/entities, and freeze assets if found.
Which previous circulars govern the procedure?
The UAPA Order of August 27, 2009, and RBI circulars dated November 5, 2009 and October 29, 2009 outline the compliance steps.