What changed
RBI has forwarded two new notes from the Government of India (Ministry of External Affairs) dated July 28 and July 30, 2010, containing changes to the UN Security Council's 1267 Committee consolidated list of individuals and entities linked to Al-Qaida and Taliban. This updates the previous circular of August 17, 2010, requiring RRBs to incorporate these changes into their screening lists.
What it means for you
RRBs must immediately update their internal databases with the revised UN consolidated list to prevent any dealings with newly designated terrorists or entities. Failure to screen new and existing accounts against this list could lead to regulatory action and sanctions. The circular also reinforces the need to freeze funds and assets of designated persons as per the UAPA Order of August 27, 2009.
What you must do
- Update the consolidated list of terrorist individuals/entities using the UN website and the enclosed government notes.
- Before opening any new account, verify the proposed customer's name against the updated list.
- Scan all existing accounts to identify and report any accounts linked to listed individuals or entities.
- Follow the freezing procedures detailed in paragraph 6 of the November 5, 2009 circular for any designated accounts.
- Ensure the Compliance Officer/Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers and Principal Officers of RRBs, Branch managers handling account opening and KYC
Where can we find the updated consolidated list?
The complete list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. RBI has also enclosed copies of the government notes with the changes.
What action is required for existing accounts that match the list?
You must freeze the funds, financial assets, or economic resources held in such accounts, following the procedure outlined in paragraph 6 of the November 5, 2009 circular, and comply with the UAPA Order.
Do we need to acknowledge receipt of this circular?
Yes, the Compliance Officer or Principal Officer must send an acknowledgment to the concerned RBI Regional Office.