What changed
RBI forwarded a March 24, 2011 UN 1267 Committee note with changes to the consolidated list of Al-Qaida and Taliban-linked individuals and entities. This updates the previous circular dated April 21, 2011, requiring banks to update their reference list immediately.
What it means for you
Co-operative banks must ensure no new account is opened for any listed entity and must scan all existing accounts for matches. Non-compliance with UAPA Order 2009 freezing procedures could lead to regulatory action. This reinforces the ongoing obligation to maintain updated sanctions screening.
What you must do
- Update your internal consolidated list with the latest UN 1267 Committee changes from the UN website.
- Screen all new account applications against the updated list before onboarding.
- Scan all existing accounts to identify and report any matches with listed individuals/entities.
- Follow the freezing procedures outlined in paragraph 6 of RBI circular dated October 29, 2009 for any matches.
- Acknowledge receipt of this circular to your respective RBI Regional Office via the Compliance/Principal Officer.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Compliance Officers and Principal Officers of co-operative banks
Where can I 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 changes via this circular.
What action should I take if I find a match in an existing account?
You must immediately freeze the funds, financial assets, or economic resources as detailed in paragraph 6 of RBI circular dated October 29, 2009, and follow the UAPA Order dated August 27, 2009.
Do I need to confirm receipt of this circular?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office.