What changed
The UNSC Committee under resolution 1718 amended an entry on its Sanctions List for individuals and entities related to the Democratic People's Republic of Korea. RBI has communicated these changes, marked with strikethrough and underline, to all regulated entities, updating the designated list referenced in the September 1, 2023 Order.
What it means for you
Banks and other regulated entities must immediately update their sanctions screening databases to reflect the latest UNSC 1718 list amendments. Failure to comply could lead to regulatory action, as this is part of India's obligations under the WMD Act and UNSC resolutions. The circular reinforces the daily verification requirement for the UNSCR 1718 sanctions list.
What you must do
- Update your sanctions screening systems with the latest UNSC 1718 list amendments for DPRK, as enclosed in the circular.
- Ensure daily verification of the UNSCR 1718 Sanctions List from the MEA website and the UN Security Council website.
- Review and align your KYC/AML procedures with the amended designated list under Section 12A of the WMD Act.
- Communicate these changes to your compliance and operations teams for immediate implementation.
Who it affects
All regulated entities (banks, NBFCs, payment systems, etc.), Compliance and AML/KYC departments, Sanctions screening and transaction monitoring teams
What is the source of the updated sanctions list?
The UN Security Council Committee established pursuant to resolution 1718 (2006) has amended its Sanctions List for DPRK. The latest version is available on the UN Security Council website.
How often should we check the sanctions list?
As per RBI's Master Direction on KYC, regulated entities must verify the UNSCR 1718 Sanctions List every day to account for any additions, deletions, or other changes.
What happens if we don't comply with this circular?
Non-compliance may result in regulatory action, as this circular is part of India's legal framework under the WMD Act, 2005, and UNSC resolutions. Meticulous compliance is mandatory.