What changed
RBI has forwarded a June 21, 2012 UN Security Council update to the Al-Qaida Sanctions List. Banks must now use this updated list for customer screening and account freezing actions as per earlier UAPA orders.
What it means for you
Urban co-operative banks must immediately update their internal sanctions lists and ensure no new account is opened for any listed individual or entity. Existing accounts must be scanned, and any matches must trigger freezing of funds and assets as per the 2009 UAPA procedure.
What you must do
- Update your internal sanctions database with the latest UN Al-Qaida list from the provided 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 and assets of matched accounts as per paragraph 7 of the November 16, 2009 circular.
- Compliance Officer/Principal Officer must acknowledge receipt of this circular to the concerned RBI regional office.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers and Principal Officers of UCBs
What is the source of the updated sanctions list?
The list is the UN Security Council's 1267/1989 Committee Al-Qaida Sanctions List, available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.
What actions are required for existing accounts that match the list?
Banks must freeze the funds, financial assets, or economic resources held in such accounts, following the procedure detailed in paragraph 7 of the November 16, 2009 circular.
Who needs to acknowledge this circular?
The Compliance Officer or Principal Officer of each Primary Urban Co-operative Bank must send an acknowledgment to the respective RBI regional office.