What changed
RBI has forwarded a Government of India note dated April 28, 2011, from the UN Security Council's 1267 Committee, containing changes to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. RRBs must update their records with this revised list immediately.
What it means for you
RRBs must now cross-check every new account opening against the updated UN terror list and review all existing accounts for any matches. Non-compliance could lead to regulatory action. This reinforces the strict procedures under the UAPA Order of August 27, 2009, and earlier RBI circulars.
What you must do
- Update the consolidated list of terrorist individuals/entities as circulated by RBI using the UN website link provided.
- Before opening any new account, verify the proposed customer's name does not appear in the updated list.
- Scan all existing accounts to ensure no account is held by or linked to any listed individual or entity.
- Follow the freezing procedures detailed in paragraph 6 of the November 5, 2009 circular for any matches found.
- Acknowledge receipt of this circular to your respective RBI Regional Office via the Compliance Officer/Principal Officer.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers / Principal Officers of RRBs, Branch managers handling account opening and KYC
Where can we find the complete 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 circulated the latest 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 procedures detailed in paragraph 6 of RBI circular dated November 5, 2009, which covers freezing of funds, financial assets, or economic resources.
Do we need to confirm receipt of this circular?
Yes, the Compliance Officer/Principal Officer should acknowledge receipt of this letter to the concerned RBI Regional Office.