What changed
RBI has circulated updated UN Security Council 1988 Sanctions List entries received from the Ministry of External Affairs (notes dated June 27, July 2, July 19, August 13, and August 15, 2012). All PSOs must now incorporate these changes into their customer screening processes.
What it means for you
Banks and payment operators must ensure no new account is opened for any listed individual/entity and that all existing accounts are scanned for matches. Freezing of funds and assets must follow the procedure outlined in RBI's September 17, 2009 circular. Non-compliance could lead to regulatory action.
What you must do
- Update your internal sanctions database with the latest UN 1988 List entries from the enclosed government notes.
- Screen all new account applications against the updated list before onboarding.
- Conduct a retrospective scan of all existing customer accounts to identify any matches.
- Freeze funds and assets of any matched accounts as per paragraph 6 of the September 17, 2009 circular.
- Ensure your Nodal/Principal Officer acknowledges receipt of this circular to RBI.
Who it affects
All Payment System Operators authorized under PSS Act, 2007, Banks offering payment services, Compliance and AML teams of PSOs
What is the UN 1988 Sanctions List?
It is a list maintained by the UN Security Council's 1998 Committee of individuals and entities linked to the Taliban, subject to asset freeze and other sanctions under Resolution 1988 (2011).
What action is required for existing accounts that match the list?
PSOs must freeze the funds, financial assets, or economic resources held in such accounts, following the procedure detailed in paragraph 6 of RBI circular DBOD.AML.BC. No. 44/14.01.001/2009-10 dated September 17, 2009.
Where can I find the complete sanctions list?
The full list is available on the UN website at http://www.un.org/sc/committees/1988/list.shtml.