What changed
RBI forwarded a new UN 1267 Committee note dated September 9, 2010, containing changes to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. Urban Co-operative Banks must now update their internal lists accordingly and comply with the UAPA Order of August 27, 2009, as previously advised.
What it means for you
UCBs must immediately update their customer screening databases with the revised UN list and check all new and existing accounts against it. Failure to comply could lead to regulatory action, as the circular mandates strict adherence to government orders on freezing assets of designated entities.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UN 1267 Committee changes received from the Government of India.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and report any links to listed individuals or entities.
- Follow the freezing procedures outlined in paragraph 6 of RBI circular dated November 16, 2009, for any accounts linked to designated entities.
- Acknowledge receipt of this circular to your respective Regional Office through the Compliance Officer/Principal Officer.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers and Principal Officers of UCBs
What is the source of the updated list?
The updated list comes from the UN Security Council's 1267 Committee, forwarded by the Ministry of External Affairs, Government of India, via a note dated September 9, 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 November 16, 2009 circular.
Where can the full consolidated list be accessed?
The complete consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.