What changed
RBI received an updated UN Security Council 1988 Committee sanctions list from the Ministry of External Affairs. Banks must now incorporate these changes into their screening processes and ensure compliance with the UAPA Order of August 27, 2009.
What it means for you
Banks must immediately update their internal sanctions lists and screen all new account openings against the revised list. Existing accounts must also be scanned to identify any matches, and if found, banks must freeze funds and assets as per the September 2009 circular's paragraph 6.
What you must do
- Update your internal sanctions database with the latest UNSCR 1988 list from the UN website.
- Screen all new account applications against the updated list before onboarding.
- Conduct a retrospective scan of all existing accounts for matches with the list.
- Freeze funds and assets of any matched individuals/entities following the procedure in the September 17, 2009 circular.
- Ensure your Compliance Officer acknowledges receipt of this circular.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
What is the source of the updated sanctions list?
The list is from the UN Security Council's 1988 Committee, forwarded by the Ministry of External Affairs. The full list is available on the UN website at http://www.un.org/sc/committees/1988/list.shtml.
What actions are required if an existing account matches the list?
Banks must freeze the funds, financial assets, or economic resources held in such accounts, following the detailed procedure in paragraph 6 of the September 17, 2009 circular.
Who must acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of each bank or financial institution must acknowledge receipt.