What changed
RBI issued a circular on July 4, 2011, forwarding a June 23, 2011 UN Security Council 1267 Committee note with changes to the consolidated list of individuals/entities linked to Al-Qaida and Taliban. Banks must update their records with this revised list and ensure no accounts are held by or linked to listed entities.
What it means for you
Co-operative banks must immediately update their internal databases with the latest UNSC 1267 consolidated list and screen all new and existing accounts. Non-compliance with UAPA orders and freezing procedures could lead to regulatory action and reputational risk.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UNSC 1267 Committee changes circulated by RBI.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify and report any links to listed individuals/entities.
- Follow the freezing procedures outlined in the UAPA Order of August 27, 2009, as per RBI circular of October 29, 2009.
- Ensure Compliance Officer/Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Who it affects
State Co-operative Banks, Central Co-operative Banks, Compliance Officers, Principal Officers
What is the UNSC 1267 consolidated list?
It is a list maintained by the UN Security Council's 1267 Committee of individuals and entities associated with Al-Qaida and Taliban, which RBI requires banks to use for screening accounts.
What action is required for existing accounts?
Banks must scan all existing accounts to ensure no account is held by or linked to any entity or individual on the updated list, and take freezing action as per UAPA orders.
Who should acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the bank must acknowledge receipt to the concerned RBI Regional Office.