What changed
RBI forwarded the UN Security Council's 1267/1989 Committee's 19th update note (August 6, 2013) amending the Al-Qaida Sanctions List. Banks must now use this updated list for customer screening and account freezing actions.
What it means for you
Banks must immediately update their internal sanctions lists with the new UN entries. Failure to screen new accounts or review existing ones against this list could lead to regulatory action. The freezing of funds and assets of designated individuals/entities is mandatory under the UAPA Order.
What you must do
- Update your internal sanctions database with the latest UN Al-Qaida Sanctions List from the provided UN URL.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and freeze any linked to listed individuals/entities.
- Follow the freezing procedures detailed in paragraph 6 of earlier RBI circulars (Nov 2009).
- Ensure the Compliance Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Who it affects
Regional Rural Banks (RRBs), State Cooperative Banks, Central Cooperative Banks, Compliance Officers / Principal Officers of these banks
What is the source of the updated sanctions list?
The list is the UN Security Council's 1267/1989 Committee's Al-Qaida Sanctions List, updated via the 19th note dated August 6, 2013. The full list is available on the UN website at the URLs provided in the circular.
Do we need to freeze accounts immediately if a match is found?
Yes. As per the UAPA Order and earlier RBI circulars, banks must freeze funds, financial assets, or economic resources of designated individuals/entities. Follow the procedure outlined in paragraph 6 of the November 2009 circulars.
Who should acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the bank must send an acknowledgment to the concerned RBI Regional Office.