What changed
RBI has forwarded four new UN notes (dated July 5, 20, 27, and August 29, 2012) from the 1267/1989 Committee that update the Al-Qaida Sanctions List. Banks must now incorporate these changes into their screening processes.
What it means for you
Banks must immediately update their internal sanctions lists to include the newly designated individuals/entities. Failure to screen new accounts or review existing ones against this list could lead to regulatory action. The circular reinforces the strict compliance framework under UAPA, 1967, including freezing of assets linked to listed entities.
What you must do
- Update your internal sanctions list with the latest UN Al-Qaida Sanctions List changes from the enclosed government notes.
- Screen all new account applications against the updated list before opening accounts.
- Review all existing accounts to identify any matches with the updated list and report findings.
- Follow the freezing procedures outlined in earlier RBI circulars (dated Nov 5, 2009 and Oct 29, 2009) for any matched accounts.
- Ensure your Compliance Officer/Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), All State and Central Co-operative Banks
What is the source of the updated sanctions list?
The updates come from the UN Security Council's 1267/1989 Committee, communicated via four notes from the Ministry of External Affairs dated July 5, 20, 27, and August 29, 2012.
Do we need to freeze accounts immediately if a match is found?
Yes, you must follow the freezing procedures detailed in paragraph 6 of the earlier circulars (RPCD.CO.RRB.No.39/03.05.33(E)/2009-10 dated Nov 5, 2009 and RPCD.CO.RF.AML.BC.No.34/07.40.00/2009-10 dated Oct 29, 2009).
Where can we access the full sanctions list?
The complete list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.