What changed
RBI has circulated a new UN Security Council update to the Al-Qaida Sanctions List, received from the Ministry of External Affairs on November 15, 2012. Banks must replace their previous list with this updated version and ensure compliance with the UAPA Order of August 27, 2009.
What it means for you
Banks must immediately update their internal sanctions screening systems with the revised list and verify all new account openings against it. Existing accounts must be scanned to identify any matches, and if found, funds and assets must be frozen as per the September 17, 2009 circular's paragraph 6. Non-compliance could lead to regulatory action.
What you must do
- Update your sanctions list with the latest UN Al-Qaida entries from the November 15, 2012 notification.
- Screen all new account applications against the updated list before onboarding.
- Scan all existing accounts to detect any linked to listed individuals or entities.
- Freeze funds and assets of matched accounts following the procedure in paragraph 6 of 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 comes from the UN Security Council's 1267/1989 Committee Al-Qaida Sanctions List, forwarded by the Ministry of External Affairs on November 15, 2012.
What action is required for existing accounts that match the list?
Banks 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 the full list be accessed?
The complete list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.