What changed
RBI received an updated consolidated list from the UN Security Council's 1267 Committee via the Ministry of External Affairs, reflecting changes to individuals and entities linked to Al-Qaida and Taliban. RRBs must now incorporate these changes into their internal screening lists.
What it means for you
RRBs face heightened compliance burden to ensure no account is opened for or held by newly designated terrorists. Failure to screen and freeze accounts could lead to regulatory action. This reinforces the need for robust AML/KYC systems and real-time list updates.
What you must do
- Update your internal consolidated list of terrorist individuals/entities with the latest UN 1267 Committee changes.
- Before opening any new account, verify the proposed customer's name against the updated list.
- Scan all existing accounts to identify any linked to or held by newly listed individuals/entities.
- Freeze funds, financial assets, or economic resources of designated persons as per paragraph 6 of the November 5, 2009 circular.
- Ensure Compliance Officer/Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers and Principal Officers of RRBs, Branch managers handling account opening and AML checks
Where can we find the complete updated list of terrorist individuals/entities?
The full consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml. RBI has also enclosed a copy of the UN note with this circular.
What action should we take if we find an existing account linked to a listed entity?
You must freeze the funds, financial assets, or economic resources held in that account, following the procedure detailed in paragraph 6 of RBI circular dated November 5, 2009, issued under the UAPA Order.
Do we need to acknowledge receipt of this circular?
Yes, the Compliance Officer or Principal Officer must send an acknowledgment to the concerned RBI Regional Office.