What changed
RBI circulated an updated UN Security Council 1988 Sanctions List (Taliban-related) received from the Ministry of External Affairs. Banks must now use this updated list for customer screening and account monitoring.
What it means for you
Banks must immediately update their internal sanctions screening systems with the new list. Failure to identify and freeze accounts of designated entities could lead to regulatory penalties and reputational risk. This reinforces India's commitment to UN counter-terrorism financing obligations.
What you must do
- Update your internal sanctions list with the latest UNSCR 1988 list available on the UN website.
- Screen all new account applications against the updated list before onboarding.
- Run a one-time scan of all existing accounts to identify any matches with the updated list.
- Freeze funds and financial assets of any matched individuals/entities as per UAPA Order procedures.
- Ensure Compliance Officer acknowledges receipt of this circular to RBI.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
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 a copy of the UN note with changes.
What action is required for existing accounts that match the list?
You must freeze all funds, financial assets, or economic resources held in those 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.
Who should acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the bank/financial institution must acknowledge receipt to RBI.