What changed
RBI has shared the consolidated list of UNSC-designated/sanctioned individuals and entities related to non-proliferation on DPRK and Iran, as informed by the Ministry of External Affairs. This list serves as the 'designated list' under the January 30, 2023 order for implementing Section 12A of the WMD Act, 2005.
What it means for you
Banks and other regulated entities must cross-check their customer databases against this updated consolidated sanctions list. Non-compliance with Section 12A of the WMD Act could lead to regulatory action, so integrating this list into your AML/KYC screening processes is critical.
What you must do
- Update your AML/KYC screening systems with the consolidated UNSC sanctions list for DPRK and Iran provided in the annex.
- Ensure meticulous compliance with the procedure for implementing Section 12A of the WMD Act, 2005, as per the KYC Master Direction.
- Regularly monitor the UN Security Council websites for the latest versions of the sanctions lists.
- Train compliance staff on the updated designated list and the obligations under the WMD Act.
Who it affects
All regulated entities (banks, NBFCs, payment system operators, etc.), AML/KYC compliance teams, Customer onboarding and screening departments
What is the 'designated list' referred to in this circular?
It is the consolidated list of UNSC-sanctioned individuals and entities under resolutions related to non-proliferation on DPRK and Iran, provided by the Ministry of External Affairs. This list is used for implementing Section 12A of the WMD Act, 2005.
Where can I find the latest UNSC sanctions lists?
The latest versions are accessible on the UN Security Council's website at the URLs provided in the circular: one for DPRK sanctions and one for Iran sanctions.
What happens if we don't comply with this circular?
Non-compliance with Section 12A of the WMD Act and the KYC Master Direction could attract regulatory penalties. Meticulous compliance is mandatory for all regulated entities.