What changed
The Government of India forwarded a July 19, 2011 note from the UN Security Council's 1267 Committee with changes to the consolidated list of individuals and entities linked to Al-Qaida and Taliban. Banks must update their records with this revised list and ensure compliance with earlier RBI circulars on the UAPA Order.
What it means for you
Banks must immediately incorporate the updated UN sanctions list into their customer screening processes. Failure to identify and freeze accounts of designated entities could lead to regulatory action. This reinforces the need for robust AML/KYC systems to prevent financing of terrorism.
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.
- Conduct a one-time scan of all existing accounts to identify any matches with the list.
- Freeze funds, financial assets, or economic resources of any matched accounts as per paragraph 6 of the September 17, 2009 circular.
- Ensure the Compliance Officer/Principal Officer acknowledges receipt of this circular.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
What is the source of the updated list?
The list is the UN Security Council's 1267 Committee consolidated list of individuals and entities linked to Al-Qaida and Taliban, as forwarded by the Ministry of External Affairs via a note dated July 19, 2011.
What action is required for existing accounts that match the list?
Banks must freeze the funds, financial assets, or economic resources of such accounts, following the procedure detailed in paragraph 6 of the September 17, 2009 circular on the UAPA Order.
Where can the full consolidated list be accessed?
The complete list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.