What changed
RBI forwarded a Government of India note from the UN 1267 Committee with changes to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. Banks must now use this updated list for account screening and compliance.
What it means for you
Co-operative banks must immediately update their internal watchlists and verify that no new or existing customer matches the revised UN list. Failure to comply with the UAPA Order and freezing procedures could lead to regulatory action. This reinforces the ongoing obligation to prevent terrorist financing through the banking system.
What you must do
- Update the consolidated list of terrorist individuals/entities with the latest UN 1267 Committee changes received from the Government.
- Screen all new account applications against the updated list before onboarding.
- Scan all existing accounts to identify and report any matches with the list.
- Follow the freezing procedures for funds/assets as per paragraph 6 of the October 29, 2009 circular.
- Ensure the Compliance Officer/Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Compliance Officers/Principal Officers of co-operative banks
What is the source of the updated list?
The list comes from the UN Security Council's 1267 Committee, forwarded by the Ministry of External Affairs via a note dated July 15, 2010.
Do we need to check existing accounts as well?
Yes, the circular explicitly requires scanning all existing accounts to ensure none are held by or linked to listed individuals or entities.
What action is required if we find a match?
You must freeze the funds, financial assets, or economic resources as detailed in paragraph 6 of the October 29, 2009 circular, following the UAPA Order.