What changed
RBI has forwarded the 19th update note from the UN Security Council's 1267/1989 Committee, dated August 6, 2013, which amends the Al-Qaida Sanctions List. This update adds or modifies entries of individuals and entities linked to Al-Qaida that UCBs must now incorporate into their compliance checks.
What it means for you
UCBs must immediately update their internal sanction lists to reflect the latest UN changes. Failure to screen new accounts or identify existing ones linked to listed entities could lead to regulatory action. Banks must also follow the freezing procedures outlined in the earlier UAPA circular of November 16, 2009.
What you must do
- Update your internal database with the latest UN Al-Qaida sanctions list from the provided UN website.
- Screen all new account openings against the updated list before onboarding customers.
- Scan all existing accounts to identify any linked to listed individuals or entities.
- Freeze funds and financial assets of any matched accounts as per paragraph 7 of the November 16, 2009 circular.
- Ensure your Compliance Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers and Principal Officers of UCBs, Branch managers handling account opening and KYC
What is the source of the updated sanctions list?
The list is the 19th update from the UN Security Council's 1267/1989 Committee, forwarded by the Ministry of External Affairs. It is available on the UN website at the URL mentioned in the circular.
What actions must we take if we find a match in existing accounts?
You must freeze the funds, financial assets, or economic resources held in those accounts, following the procedure detailed in paragraph 7 of the November 16, 2009 circular.
Do we need to report compliance to RBI?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular to the concerned Regional Office of RBI.