What changed
RBI forwarded an updated Al-Qaida Sanctions List from the UN Security Council's 1267/1989 Committee, based on a note received via the Ministry of External Affairs. This replaces the previous list circulated on June 01, 2012. Banks must now use this updated list for customer screening and account monitoring.
What it means for you
Urban co-operative banks must immediately integrate the new sanctions list into their account opening and ongoing due diligence processes. Failure to identify and freeze accounts linked to listed entities could lead to regulatory action. This reinforces the government's commitment to combating terror financing through the banking system.
What you must do
- Update your internal sanctions list with the latest UN Al-Qaida list available on the UN website.
- 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, financial assets, or economic resources of matched accounts as per paragraph 7 of the circular dated November 16, 2009.
- Ensure the Compliance Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers and Principal Officers of these banks, Customers of urban co-operative banks
Where can I find the complete updated Al-Qaida sanctions list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.
What action should we take if we find an existing account matching the list?
You must freeze the funds, financial assets, or economic resources in that account, following the procedure detailed in paragraph 7 of RBI circular dated November 16, 2009.
Do we need to acknowledge receipt of this circular?
Yes, the Compliance Officer or Principal Officer must send an acknowledgment to the concerned RBI Regional Office.