What changed
RBI has forwarded a June 23, 2011 UN Security Council 1267 Committee note with changes to the consolidated list of Al-Qaida and Taliban-linked individuals/entities. RRBs must now incorporate these updates into their screening processes for new and existing accounts.
What it means for you
RRBs face heightened compliance burden to cross-check all customers against the updated UN list. Failure to identify and freeze accounts of designated entities 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.
- Screen all new account applications against the updated list before account opening.
- Scan all existing accounts to identify and flag any matches with the updated list.
- Freeze funds, financial assets, or economic resources of matched accounts as per paragraph 6 of the November 5, 2009 circular.
- Ensure Compliance Officer/Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Compliance Officers / Principal Officers of RRBs, Branch managers handling account opening and KYC
Where can we access the complete updated consolidated list?
The full 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 is required if we find an existing account matches the list?
You must immediately freeze the funds, financial assets, or economic resources held in that account, following the procedure detailed in paragraph 6 of the November 5, 2009 circular.
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.