What changed
RBI forwarded eight UN Security Council 1267 Committee notes (dated Aug 6 to Dec 17, 2010) with changes to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. Banks are required to update their reference list and ensure compliance with the UAPA Order of August 27, 2009, as previously communicated.
What it means for you
Cooperative banks must immediately incorporate these UN list updates into their AML/KYC screening processes. Failure to identify and freeze accounts of designated entities could lead to regulatory action. The circular reinforces that existing account holders must be re-scanned against the latest list, and new account openings must include a name check.
What you must do
- Update your internal UNSCR 1267/1822 consolidated list with the eight annexes provided in this circular.
- Screen all new account applicants against the updated list before account opening.
- Re-scan all existing customer accounts to identify any matches with the updated list.
- Freeze funds and financial assets of any matched individuals/entities as per paragraph 6 of the October 29, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office through the Compliance Officer/Principal Officer.
Who it affects
State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs), Compliance Officers and Principal Officers of cooperative banks
What is the source of the updated list?
The list is based on notes from the UN Security Council's 1267 Committee, forwarded by the Ministry of External Affairs. The full consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
Do we need to check only new accounts?
No. The circular explicitly requires both pre-opening checks for new accounts and scanning of all existing accounts to ensure no account is held by or linked to any listed entity or individual.
What action is required if a match is found?
You must freeze the funds, financial assets, or economic resources held in the bank account of the designated individual/entity, following the procedure detailed in paragraph 6 of the RBI circular dated October 29, 2009.