What changed
RBI forwarded a June 25, 2010 UN 1267 Committee note with changes to the consolidated list of Al-Qaida and Taliban-linked individuals/entities. UCBs must update their internal lists accordingly and comply with the UAPA Order of August 27, 2009, as previously advised.
What it means for you
UCBs must immediately update their customer screening databases with the revised UN sanctions list. They are required to check all new account applicants against this list and review existing accounts for any matches. Non-compliance could lead to regulatory action and reputational risk.
What you must do
- Update the consolidated list of designated individuals/entities using the UN website link provided.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and report any matches with the list.
- Follow the freezing procedures outlined in 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, Branch managers handling account opening and monitoring
Where can we find the complete consolidated list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What action is required for existing accounts that match the list?
Banks must follow the freezing procedures detailed in paragraph 6 of the November 16, 2009 circular, which includes freezing funds, financial assets, or economic resources.
Do we need to report compliance to RBI?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office.