What changed
RBI received a Government of India note dated April 28, 2011, from the UN Security Council's 1267 Committee with changes to the Consolidated List of individuals and entities linked to Al-Qaida and Taliban. Banks must update their records accordingly.
What it means for you
Banks must ensure no new account is opened for any listed individual/entity and scan all existing accounts for matches. Freezing of funds and assets must follow the procedure in the September 17, 2009 circular. Compliance officers must acknowledge receipt.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UNSC 1267 Committee changes.
- Screen all new account applications against the updated list before opening.
- Scan all existing accounts to identify any linked to listed individuals/entities.
- Follow UAPA Order dated August 27, 2009, and RBI circular of September 17, 2009, for freezing funds and assets.
- 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
What is the source of the updated list?
The list is from the UN Security Council's 1267 Committee, available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What actions are required for existing accounts?
Banks must scan all existing accounts to ensure none are held by or linked to any listed individuals or entities, and freeze funds/assets as per the UAPA Order and RBI circular.
Who needs to acknowledge this circular?
The Compliance Officer or Principal Officer of each bank/financial institution must acknowledge receipt.