What changed
RBI has circulated the 19th update note from the UN Security Council's 1267/1989 Committee, which amends the Al-Qaida Sanctions List. Payment system operators must now use this updated list to screen all new and existing accounts.
What it means for you
Banks and payment operators must immediately update their internal sanctions databases with the revised UN list. Failure to identify and freeze accounts linked to listed entities could lead to regulatory action. This reinforces the government's commitment to combating terrorism financing through the payment ecosystem.
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 openings against the updated list before onboarding customers.
- Scan all existing accounts to identify and flag any matches with the updated list.
- Freeze funds, financial assets, or economic resources of any matched individuals or entities as per paragraph 6 of the September 17, 2009 circular.
- Ensure nodal officers acknowledge receipt of this circular to confirm compliance.
Who it affects
All payment system operators authorized under the PSS Act, 2007, Banks offering payment services, Compliance and AML teams at financial institutions
What is the source of the updated sanctions list?
The list is the 19th update from the UN Security Council's 1267/1989 Committee, available on the UN website at the URL provided in the circular.
What action is required for existing accounts that match the list?
PSOs must freeze the funds, financial assets, or economic resources of such accounts, following the procedure in paragraph 6 of the September 17, 2009 RBI circular.
Who needs to acknowledge receipt of this circular?
The Nodal Officer or Principal Officer of each payment system operator must acknowledge receipt to the RBI.