What changed
RBI issued a circular on December 8, 2010, forwarding a Government of India note with changes to the UN Security Council's consolidated list of Al-Qaida and Taliban-linked individuals/entities. Banks must update their records with the revised list and ensure compliance with the UAPA Order of August 27, 2009, for freezing assets.
What it means for you
Banks and All India Financial Institutions must immediately update their internal sanctions lists with the latest UN changes. They are required to screen all new account openings against this list and review existing accounts to identify any matches. Freezing of funds and assets must follow the detailed procedures in the September 17, 2009 circular.
What you must do
- Update the consolidated list of terrorist individuals/entities from the UN website and your internal systems.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals/entities.
- Follow the UAPA Order and September 2009 circular procedures for freezing funds and assets of designated entities.
- Ensure Compliance Officer/Principal Officer acknowledges receipt of this circular.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
Where can we find the complete consolidated list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What action is required for existing accounts that match the list?
Banks must freeze funds, financial assets, or economic resources in such accounts as per paragraph 6 of the September 17, 2009 circular, following the UAPA Order.
Do we need to acknowledge receipt of this circular?
Yes, the Compliance Officer or Principal Officer should acknowledge receipt of this circular letter.