What changed
The UN Security Council approved amendments to 102 entries on its ISIL (Da'esh) and Al-Qaida Sanctions List following the 2021 Annual Review. RBI has communicated these changes to all regulated entities, updating the list they must screen against.
What it means for you
Banks and other regulated entities must immediately cross-check their customer base against the amended UNSC sanctions list. Any accounts linked to the updated entries must be frozen and reported. Non-compliance could lead to regulatory action under UAPA and KYC guidelines.
What you must do
- Update your sanctions screening systems with the amended UNSC list of 102 entries.
- Review all existing customer accounts to ensure no matches with the updated list.
- Freeze and report any accounts identified as belonging to listed individuals/entities.
- Forward any delisting requests received from customers to Joint Secretary (CTCR), MHA.
- Document compliance actions for audit and regulatory review.
Who it affects
All scheduled commercial banks, Non-banking financial companies (NBFCs), Payment system operators, Other regulated entities under RBI's KYC Master Direction
What is the source of the updated sanctions list?
The UN Security Council Committee approved amendments to 102 entries on its ISIL (Da'esh) and Al-Qaida Sanctions List, as per press release SC/15229 dated March 15, 2023.
What should we do if a customer requests delisting?
Forward the request electronically to Joint Secretary (CTCR), Ministry of Home Affairs. Customers can also approach the UN Ombudsperson for delisting.
Which sections of the KYC Master Direction apply?
Sections 51, 52, and 53 of the Master Direction on KYC (dated February 25, 2016, as amended) along with the UAPA Order dated February 2, 2021.