What changed
RBI has circulated updated UN Security Council 1988 Sanctions List entries (as of June 27 and July 2, 2012) to all co-operative banks and RRBs. Banks must now incorporate these changes into their customer screening processes.
What it means for you
Banks must ensure no account is opened for or linked to any newly listed individual/entity. Existing accounts must be scanned immediately. Freezing of funds and assets must follow the procedures outlined in earlier RBI circulars (dated Oct 29, 2009 and Nov 5, 2009). Non-compliance could attract regulatory action.
What you must do
- Update your internal sanctions list with the latest UNSCR 1988 entries from the enclosed government notes.
- Screen all new account applications against the updated list before onboarding.
- Conduct a one-time scan of all existing accounts to identify any matches with the updated list.
- If a match is found, freeze the account and related assets as per paragraph 6 of the referenced 2009 circulars.
- Acknowledge receipt of this circular to your respective RBI Regional Office through your Compliance/Principal Officer.
Who it affects
State Co-operative Banks, Central Co-operative Banks, Regional Rural Banks, Compliance Officers / Principal Officers of these banks
What is the UNSCR 1988 Sanctions List?
It is a UN Security Council list of individuals and entities associated with the Taliban, against which member states must apply asset freezes and other financial restrictions.
Do we need to check only new accounts?
No. The circular requires both pre-opening checks for new accounts and a review of all existing accounts to ensure no account is linked to any listed individual or entity.
Where can we find the full updated list?
The complete list is available on the UN website at http://www.un.org/sc/committees/1988/list.shtml. RBI has also enclosed the government notes with the changes.