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 Al-Qaida and Taliban-linked individuals and entities. Urban Co-operative Banks must now update their records with these changes and ensure compliance with earlier circulars on account screening and freezing.
What it means for you
UCBs must immediately update their internal lists to reflect the latest UN sanctions list and screen all new account openings against it. Existing accounts must also be scanned to identify any matches, and if found, banks must freeze funds and assets as per the UAPA Order of August 27, 2009. Non-compliance could lead to regulatory action.
What you must do
- Update your consolidated list of sanctioned individuals/entities with the latest UNSCR 1267/1822 changes received from the Government.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals/entities.
- Freeze funds, financial assets, or economic resources of designated entities as per paragraph 6 of the November 16, 2009 circular.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers/Principal Officers of UCBs
What is the source of the updated list?
The list is from the UN Security Council's 1267 Committee, forwarded by the Ministry of External Affairs via a note dated April 28, 2011.
What actions are required for existing accounts?
Banks must scan all existing accounts to check if any are held by or linked to listed individuals/entities, and freeze funds as per the UAPA Order.
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.