What changed
RBI issued a circular on July 20, 2010, forwarding a Government of India note with changes to the UN Security Council's 1267 Committee consolidated list of individuals/entities linked to Al-Qaida and Taliban. Banks must update their records with these changes and ensure compliance with earlier instructions on account screening and asset freezing.
What it means for you
Co-operative banks must immediately update their internal databases with the revised UN list and cross-check all new and existing customers. Failure to identify and freeze accounts of designated entities could lead to regulatory action. This reinforces the strict KYC/AML framework under the UAPA Order.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UNSC 1267 Committee changes received from Government of India.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to ensure none are held by or linked to listed individuals/entities.
- Follow the procedure in the UAPA Order dated August 27, 2009, for freezing funds, financial assets, or economic resources of designated persons.
- Have the Compliance Officer/Principal Officer acknowledge receipt of this circular to the concerned RBI Regional Office.
Who it affects
All State Co-operative Banks, All Central Co-operative Banks, Compliance Officers/Principal Officers of co-operative banks
What is the source of the updated list mentioned in this circular?
The updated list is the UN Security Council's 1267 Committee consolidated list of individuals and entities linked to Al-Qaida and Taliban, as forwarded by the Government of India (Ministry of External Affairs) via a note dated June 25, 2010.
What action is 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. If found, freezing of funds and assets must follow the procedure in paragraph 6 of the circular dated October 29, 2009.
Where can the complete consolidated list be accessed?
The complete consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.