What changed
RBI issued the 23rd update to the UNSCR 1267/1989 Al-Qaida Sanctions List, reflecting deletions made by the UN committee. Banks must now use this updated list for customer screening and account monitoring.
What it means for you
Banks must immediately incorporate the latest UN deletions into their internal sanctions lists. Failure to screen new and existing accounts against this list could lead to non-compliance with UAPA, 1967, risking regulatory action. The circular reinforces the need for meticulous adherence to government orders on freezing assets of designated entities.
What you must do
- Update your internal sanctions database with the 23rd UN Al-Qaida update regarding deletions; refer to the UN press release at http://www.un.org/News/Press/docs/2013/sc11117.doc.htm and the list URLs at http://www.un.org/sc/committees/1267/delisting.shtml and http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.
- Screen all new account applications against the updated list before account opening.
- Conduct a fresh scan of all existing accounts to identify any links to listed individuals/entities.
- Ensure compliance with the UAPA Order dated August 27, 2009, and related RBI circulars dated November 5, 2009, and October 29, 2009, for freezing funds and assets.
- Have your Compliance Officer/Principal Officer acknowledge receipt of this circular to the respective RBI Regional Office.
Who it affects
Regional Rural Banks (RRBs), State Co-operative Banks (StCBs), Central Co-operative Banks (CCBs), Compliance Officers and Principal Officers of these banks
What is the key action from this circular?
Banks must update their sanctions list with the 23rd UN Al-Qaida update regarding deletions and screen all new and existing accounts against it.
Does this circular affect only new accounts?
No, it requires scanning both new accounts before opening and all existing accounts to ensure no account is linked to listed entities.
What happens if we find a match with the list?
Follow the freezing procedures detailed in the UAPA Order dated August 27, 2009, and RBI circulars dated November 5, 2009, and October 29, 2009.