What changed
RBI has circulated updated Al-Qaida sanctions list based on UNSC 1267/1989 Committee changes as per notes dated July 5, July 20, July 27, and August 29, 2012. Banks must now incorporate these updates into their customer screening processes.
What it means for you
Banks must immediately update their internal sanctions lists with the new UN entries and screen all existing and new accounts. Non-compliance with UAPA orders could lead to regulatory action. This reinforces the government's commitment to counter-terrorism financing.
What you must do
- Update your internal sanctions database with the latest Al-Qaida list as circulated by Reserve Bank.
- 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 financial assets of any matched individuals/entities as per UAPA procedure.
- Ensure compliance 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 Al-Qaida Sanctions List, available on the UN website.
What action is required for existing accounts matching the list?
Banks must freeze funds, financial assets, or economic resources of designated individuals/entities as per paragraph 6 of the September 17, 2009 circular.
Who should acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the bank or institution must acknowledge receipt.