What changed
RBI issued a circular on October 3, 2013, updating the UN 1988 Sanctions List for Taliban-linked entities, based on a June 27, 2013 note from the UN Security Council's 1988 Committee. This updates the list previously circulated on November 22, 2012. NBFCs must now use the updated list for customer screening.
What it means for you
NBFCs must immediately update their internal sanctions screening systems with the latest UN list to avoid onboarding or servicing prohibited entities. This reinforces the need for robust AML/KYC frameworks in the NBFC sector.
What you must do
- Update your internal sanctions list with the latest UN 1988 Sanctions List from the UN website.
- Screen all new account applications against the updated list before account opening.
- Review all existing customer accounts to identify any matches with the updated list.
- Ensure no account is held by or linked to any entity or individual in the list.
Who it affects
All Non-Banking Financial Companies (NBFCs), Residuary Non-Banking Companies (RNBCs), Compliance and AML/KYC teams at NBFCs
What is the UN 1988 Sanctions List?
It is a list maintained by the UN Security Council's 1988 Committee of individuals and entities associated with the Taliban, subject to asset freezes and other sanctions.
How often does RBI update this list for NBFCs?
RBI issues circulars whenever the UN 1988 Committee updates the list. The previous circular was dated November 22, 2012. NBFCs must check the UN website for the latest version.
What should an NBFC do if it finds a match with the sanctions list?
Ensure that no account is held by or linked to the listed individual or entity, as per the RBI circular.