What changed
RBI has forwarded a fresh update from the UN Security Council's 1988 Committee, adding or modifying entries in the sanctions list of individuals and entities linked to the Taliban. This supersedes the previous list circulated in November 2012. Banks must now use the updated list for all compliance checks.
What it means for you
UCBs must immediately update their internal databases with the revised sanctions list to avoid onboarding or servicing prohibited entities. Failure to screen and freeze accounts as per the UAPA Order could lead to regulatory action. This reinforces the government's commitment to counter-terrorism financing and requires banks to maintain rigorous KYC and AML controls.
What you must do
- Update your sanctions screening system with the latest UNSCR 1988 list from the UN website.
- Screen all new account applications against the updated list before opening accounts.
- Run a fresh scan of all existing accounts to identify any matches with the revised list.
- Freeze funds and financial assets of any matched individuals/entities as per paragraph 7 of the November 16, 2009 circular.
- Acknowledge receipt of this circular to your Regional Office through the Compliance Officer.
Who it affects
Primary (Urban) Co-operative Banks, Compliance Officers and Principal Officers of UCBs, Branch managers handling account opening and monitoring
Where can I 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 MEA note dated June 27, 2013 with the circular.
What action is required if we find an existing account matching the list?
You must immediately freeze the funds, financial assets, or economic resources held in that account, following the procedure detailed in paragraph 7 of RBI circular dated November 16, 2009.
Does this circular apply to all co-operative banks or only urban ones?
This circular is specifically addressed to Primary (Urban) Co-operative Banks. Other co-operative banks may have separate instructions.