What changed
The UNSC Committee under resolution 1718 has amended certain entries on its sanctions list for individuals and entities related to DPRK. These changes are reflected in the designated list under the WMD Act, 2005, and RBI has communicated the updated list to all regulated entities.
What it means for you
Banks and other regulated entities must immediately update their sanctions screening databases to include the latest amendments. Failure to comply could lead to regulatory action, as meticulous compliance with the WMD Act and UNSC resolutions is mandatory under the KYC Master Direction.
What you must do
- Update your sanctions screening systems with the amended UNSC 1718 list entries for DPRK.
- Verify the latest list daily from MEA's website or UN Security Council's site.
- Ensure compliance with the WMD Act, 2005 and the KYC Master Direction's Section 52 and 53.
- Train compliance teams on the new amendments to avoid screening gaps.
Who it affects
All regulated entities (banks, NBFCs, payment systems, etc.), Compliance and AML teams, Sanctions screening operations
What is the source of the updated sanctions list?
The UNSC Committee under resolution 1718 has amended the sanctions list for DPRK, and MEA has communicated these changes to RBI.
How often must we check the sanctions list?
As per KYC Master Direction Section 53, regulated entities must verify the list every day to account for any modifications.
What happens if we don't comply?
Non-compliance with the WMD Act and KYC Master Direction can lead to regulatory penalties and reputational risk.