What changed
RBI has forwarded additional updates to the Al-Qaida Sanctions List based on UN Security Council Committee changes from September to October 2012. This supplements the earlier circular of October 9, 2012, requiring UCBs to incorporate the latest list revisions.
What it means for you
UCBs must immediately update their internal sanctions lists to include the newly designated individuals and entities. Failure to screen accounts against the updated list could lead to regulatory action. Banks need to ensure no new accounts are opened for listed persons and that existing linked accounts are identified and frozen as per the 2009 UAPA Order.
What you must do
- Update the UNSCR 1267/1989 sanctions list with the latest changes from the Government of India notes dated September 5, 27, October 4, 5, and 18, 2012.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals or entities.
- Freeze funds and assets of designated persons as per paragraph 7 of the November 16, 2009 circular.
- Acknowledge receipt of this circular to the concerned Regional Office.
Who it affects
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 by the Government of India via notes dated September and October 2012.
Do we need to check only new accounts or existing ones too?
Both. You must ensure no new account is opened for a listed person and scan all existing accounts to identify any linked to the list.
What action is required for accounts linked to listed entities?
Freeze the funds, financial assets, or economic resources as detailed in paragraph 7 of the November 16, 2009 circular.