What changed
The UN Security Council's 1267 Committee issued a note on March 24, 2011, updating the consolidated list of individuals and entities linked to Al-Qaida and the Taliban. RBI has now advised all NBFCs and RNBCs to incorporate these changes into their screening processes.
What it means for you
NBFCs and RNBCs must ensure no new account is opened for any person or entity on the updated list, and all existing accounts must be reviewed to identify any matches. Non-compliance could lead to regulatory action and reputational risk, as these measures are part of India's commitment to global counter-terrorism financing.
What you must do
- Update your internal databases with the latest consolidated list from the UN 1267 Committee website.
- Screen all new account applications against the updated list before onboarding.
- Conduct a thorough review of all existing accounts to identify any linked to listed individuals or entities.
- Report any matches to the appropriate authorities as per regulatory guidelines.
Who it affects
All Non-Banking Financial Companies (NBFCs), All Residuary Non-Banking Companies (RNBCs)
Where can I find the updated consolidated list?
The complete list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What should I do if I find an existing account linked to a listed entity?
You must report the account to the relevant authorities immediately and take necessary action as per RBI and UN guidelines.