What changed
RBI has forwarded a new UN Security Council 1267 Committee update (March 10, 2011) to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. This supersedes the previous list circulated via circular dated March 7, 2011. RRBs must now use this updated list for all customer screening.
What it means for you
RRBs must immediately update their internal databases with the revised UN consolidated list and ensure no new account is opened for any listed individual/entity. Existing accounts must be scanned for matches, and any linked accounts must be frozen as per the UAPA Order of August 27, 2009, and RBI's November 5, 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 integrate it into your account opening and monitoring systems.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any that 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 5, 2009 circular.
- 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 monitoring
Where can we find the latest consolidated list of terrorist individuals/entities?
The complete consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. RBI has also circulated the updated list via this circular.
What action is required 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's circular dated November 5, 2009, and comply with the UAPA Order of August 27, 2009.
Do we need to acknowledge receipt of this circular?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this letter to the concerned RBI Regional Office.