What changed
RBI issued a circular on April 5, 2011, forwarding a January 19, 2011 UN Security Council 1267 Committee note with changes to the consolidated list of Al-Qaida and Taliban-linked individuals/entities. Banks must update their records accordingly and ensure no accounts are held by or linked to listed entities.
What it means for you
Co-operative banks must immediately update their internal watchlists with the revised UN list and screen all new and existing accounts. Non-compliance with UAPA Order 2009 procedures for freezing assets could lead to regulatory action. This reinforces the ongoing obligation to prevent terrorist financing through the banking system.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UNSC 1267 Committee changes and circulate it within your bank.
- 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 UAPA Order 2009 procedures for freezing funds, financial assets, or economic resources of designated entities.
- Acknowledge receipt of this circular to the concerned RBI Regional Office via the Compliance Officer/Principal Officer.
Who it affects
State Co-operative Banks, Central Co-operative Banks, Compliance Officers/Principal Officers of co-operative banks
What is the source of the updated list?
The list is from the UN Security Council's 1267 Committee, forwarded by the Government of India (Ministry of External Affairs) via a note dated January 19, 2011.
What actions are 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.
Where can I find the complete consolidated list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.