What changed
RBI circular DPSS.CO.AD.No.2050/02.27.005/2012-13 dated May 8, 2013, updates the Al-Qaida Sanctions List based on multiple UN notifications received from January to March 2013. It requires PSOs to incorporate these changes and follow the UAPA Order of August 27, 2009, for compliance.
What it means for you
PSOs must ensure no new accounts are opened for listed individuals/entities and scan existing accounts for matches. They must also freeze funds or assets of designated entities as per the September 17, 2009 circular. Non-compliance could lead to regulatory action.
What you must do
- Update your internal sanctions list with the latest UN Al-Qaida Sanctions List from the provided UN website.
- Screen all new account applications against the updated list before opening accounts.
- Review all existing accounts to identify and report any linked to listed individuals/entities.
- Follow the freezing procedures outlined in paragraph 6 of the September 17, 2009 circular for any matches.
- Acknowledge receipt of this circular through your Nodal/Principal Officer.
Who it affects
All Payment System Operators authorized under the PSS Act, 2007, Compliance and AML teams at PSOs, Nodal Officers and Principal Officers of PSOs
What is the source of the updated sanctions list?
The list is the UN Al-Qaida Sanctions List maintained by the UN Security Council's 1267/1989 Committee, available on their website.
What actions are required for existing accounts?
PSOs must scan all existing accounts to ensure none are held by or linked to individuals/entities on the updated list, and freeze funds or assets as per the September 17, 2009 circular.
Who should acknowledge receipt of this circular?
The Nodal Officer or Principal Officer of the PSO should acknowledge receipt.