What changed
RBI received from Government of India (Ministry of External Affairs) a copy of note dated July 15, 2010 from the Chairman of the UN Security Council's 1267 Committee with changes to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. Urban Co-operative Banks must now update their records with these changes and ensure compliance with the procedure laid down in the UAPA Order dated August 27, 2009, as enclosed to the circular dated November 16, 2009.
What it means for you
UCBs must immediately update their internal watchlists with the revised UN list and screen all new account openings against it. Existing accounts must also be scanned to identify any matches, and if found, banks must freeze funds/assets as per paragraph 6 of the November 16, 2009 circular. Non-compliance could lead to regulatory action.
What you must do
- Update the consolidated list of terrorist individuals/entities from the UN website (http://www.un.org/sc/committees/1267/consolist.shtml) and circulate it to all branches.
- 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.
- Freeze funds, financial assets, or economic resources of any matched accounts as per paragraph 6 of the November 16, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office through the Compliance Officer/Principal Officer.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers/Principal Officers of UCBs, Branch managers handling account opening and KYC
Where can we find the latest consolidated list of terrorist individuals/entities?
The complete details are available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. RBI has also enclosed a copy of the UN note with changes dated July 15, 2010.
What action should we take if we find an existing account linked to a listed entity?
You must freeze the funds, financial assets, or economic resources held in that account, following the procedure detailed in paragraph 6 of RBI circular dated November 16, 2009.
Do we need to report compliance to RBI?
Yes, the Compliance Officer/Principal Officer of the bank should acknowledge receipt of this circular to the concerned RBI Regional Office.