What changed
RBI has forwarded changes to the UN 1267 Committee's Consolidated List of individuals/entities linked to Al-Qaida and Taliban, based on a note dated March 24, 2011 from the Chairman of the UN 1267 Committee, received via the Ministry of External Affairs. This updates the list previously circulated via RBI circular dated March 31, 2011. Banks must now use this updated list for customer screening.
What it means for you
Urban Co-operative Banks must immediately update their internal databases with the revised UN sanctions list. They are required to screen all new account applicants against this list and review existing accounts for any matches. Non-compliance could lead to regulatory action, as the circular reiterates strict adherence to the UAPA Order of August 27, 2009.
What you must do
- Update your bank's consolidated list of terrorist individuals/entities with the latest UN 1267 Committee list available on the UN website.
- Screen all new account applications against the updated list before opening accounts.
- Conduct a fresh scan of all existing accounts to identify any linked to listed individuals/entities.
- Follow the freezing procedures outlined in paragraph 6 of RBI circular dated November 16, 2009, for any matches found.
- Ensure the Compliance Officer/Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers and Principal Officers of UCBs, Branch managers handling account opening and KYC
Where can we find the latest consolidated list of terrorist individuals/entities?
The complete list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. RBI has also forwarded the changes via this circular.
What action should we take if we find an existing account linked to a listed entity?
You must follow the freezing of funds and assets procedures detailed in paragraph 6 of RBI circular UBD.CO.BPD.PCB.Cir. No. 21/12.05.001/2009-10 dated November 16, 2009.
Is this circular applicable only to Urban Co-operative Banks?
Yes, this circular is specifically addressed to the Chief Executive Officers of all Primary (Urban) Co-operative Banks.