What changed
RBI circulated the 20th and 21st updates to the UN Security Council's Al-Qaida Sanctions List, received from the Ministry of External Affairs. These updates amend the list of individuals and entities linked to Al-Qaida under Section 51-A of UAPA, 1967.
What it means for you
Banks must immediately incorporate these updates into their screening systems to prevent any dealings with newly designated entities. Failure to comply could lead to regulatory action and reputational risk, as the UAPA Order requires strict adherence.
What you must do
- Update your internal sanctions list with the 20th and 21st UN Al-Qaida updates immediately.
- Screen all new account applications against the updated list before onboarding.
- Re-scan all existing accounts to identify and freeze any linked to newly designated individuals/entities.
- Follow the freezing procedures outlined in paragraph 6 of the September 17, 2009 circular.
- Ensure Compliance Officer/Principal 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 these sanctions list updates?
The updates are from the UN Security Council's 1267/1989 Committee, forwarded by the Ministry of External Affairs. The full lists are available on the UN website.
Do we need to freeze accounts immediately upon finding a match?
Yes, as per the UAPA Order and RBI circular dated September 17, 2009, you must freeze funds, financial assets, or economic resources of designated individuals/entities without delay.
How often do these updates occur?
Updates are issued periodically by the UN Committee. Banks must monitor RBI circulars and the UN website for the latest changes.