What changed
RBI has circulated updated UNSCR 1988 sanctions list entries received from the Ministry of External Affairs, based on UN Security Council Committee changes via notes dated June 27, 2012 and July 2, 2012. This updates the list previously circulated in circular dated July 05, 2012 and requires UCBs to incorporate the new additions into their screening processes.
What it means for you
UCBs must immediately update their internal sanctions databases with the revised list and ensure no new accounts are opened for listed individuals/entities. Existing accounts must be scanned for matches, and any identified accounts must be frozen following the UAPA Order procedures. Non-compliance could lead to regulatory action.
What you must do
- Update your sanctions screening system with the latest UNSCR 1988 list from the UN website or enclosed updates
- Screen all new account applications against the updated list before opening
- Scan all existing accounts to identify any matches with the updated list
- Freeze funds and assets of any matched accounts as per UAPA Order procedures
- Compliance Officer/Principal Officer should acknowledge receipt of this circular to the Regional Office concerned
Who it affects
Primary Urban Co-operative Banks (UCBs), Compliance Officers and Principal Officers of UCBs, Branch managers handling account opening and KYC
Where can we find the complete updated sanctions list?
The full list is available on the UN website at http://www.un.org/sc/committees/1988/list.shtml. RBI has also enclosed the specific updates from June 27 and July 2, 2012 with this circular.
What action is required if we find a match in an existing account?
You must freeze the funds, financial assets, or economic resources held in that account, following the procedure detailed in paragraph 7 of RBI circular dated November 16, 2009, as per the UAPA Order.
Is this applicable only to new accounts or also existing ones?
Both. You must ensure no new account is opened for listed individuals/entities, and you must scan all existing accounts to identify and freeze any linked accounts.