What changed
RBI has circulated press releases from the Ministry of External Affairs covering updates 24 to 30 of the UNSCR 1267/1989 Al Qaida sanctions list. Banks must now incorporate these latest updates into their customer screening processes.
What it means for you
Banks must immediately update their internal sanctions lists with the new entries from updates 24-30. Failure to screen new and existing accounts against this list could lead to regulatory action and compliance breaches under UAPA.
What you must do
- Update your internal sanctions database with the latest UN Al Qaida list updates (24th to 30th press releases).
- Screen all new account applications against the updated list before account opening.
- Conduct a fresh scan of all existing customer accounts to identify any matches with the updated list.
- Freeze funds and assets of any matched individuals/entities as per the procedure in the September 17, 2009 circular.
- Ensure your Compliance 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 the updated sanctions list?
The updates are from the UN Security Council's 1267/1989 Committee's Al Qaida Sanctions List, communicated via press releases from the Ministry of External Affairs.
Do I need to check existing accounts as well?
Yes, the circular explicitly requires banks to scan all existing accounts to ensure no account is held by or linked to any entity or individual on the updated list.
What action should be taken if a match is found?
Follow the procedure laid down in the UAPA Order dated August 27, 2009, and detailed in paragraph 6 of RBI's circular dated September 17, 2009, which includes freezing of funds and assets.