What changed
RBI received a July 12, 2010 note from the UN 1267 Committee with changes to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. Banks must update their records with this latest list and ensure compliance with the UAPA Order dated August 27, 2009.
What it means for you
Banks must immediately update their internal screening systems with the revised UN consolidated list and verify all new and existing accounts for matches. Failure to comply could lead to regulatory action and reputational risk, as the directive mandates strict adherence to government orders on freezing assets.
What you must do
- Update the consolidated list of terrorist individuals/entities from the UN website and circulate it to all branches.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals/entities.
- Freeze funds, financial assets, or economic resources of designated entities as per paragraph 6 of the September 17, 2009 circular.
- Ensure the Compliance Officer/Principal 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 list?
The list is the UN Security Council's 1267 Committee consolidated list of individuals and entities linked to Al-Qaida and Taliban, available on the UN website.
What actions are required for existing accounts?
Banks must scan all existing accounts to ensure no account is held by or linked to any entity or individual on the updated list, and freeze assets as per the UAPA Order.
Who must acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the bank or financial institution must acknowledge receipt.