What changed
RBI has forwarded four new UN Security Council notes (dated July 5, July 20, July 27, and August 29, 2012) containing updates to the Al-Qaida Sanctions List. UCBs are now required to incorporate these changes into their customer screening processes.
What it means for you
UCBs must immediately update their internal sanctions lists to include the latest UN-designated individuals and entities. This ensures compliance with Section 51-A of UAPA, 1967, and prevents any inadvertent dealings with prohibited parties. Non-compliance could lead to regulatory action.
What you must do
- Update your internal sanctions database with the latest UNSCR 1267/1989 Al-Qaida list from the 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 any matched individuals/entities as per paragraph 7 of the November 16, 2009 circular.
- Acknowledge receipt of this circular to your Regional Office through the Compliance/Principal Officer.
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 updates come from the UN Security Council's 1267/1989 Committee, forwarded via the Ministry of External Affairs. The full list is 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 of any matched individual or entity, following the procedure detailed in paragraph 7 of the November 16, 2009 circular.
Who should acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the UCB must send an acknowledgment to the concerned Regional Office of RBI.