What changed
RBI has forwarded a new UN Security Council 1267 Committee note (dated September 15, 2011) with changes to the consolidated list of Al-Qaida-linked individuals and entities. RRBs must now update their internal lists accordingly and ensure compliance with the updated UN sanctions list.
What it means for you
RRBs must immediately incorporate the latest UN list changes into their customer screening processes. Failure to identify and freeze accounts of designated entities could lead to regulatory action. This reinforces the ongoing obligation to prevent any financial support to terrorist networks.
What you must do
- Update the consolidated list of terrorist individuals/entities as per the UN 1267 Committee's latest changes.
- Before opening any new account, verify the proposed customer's name against the updated list.
- Scan all existing accounts to identify any matches with the updated list.
- Freeze funds, financial assets, or economic resources of any matched accounts 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/Principal Officers of RRBs, Branch managers handling account opening and KYC
What is the source of the updated list?
The list is based on changes made by the UN Security Council's 1267 Committee, forwarded by the Ministry of External Affairs. The full consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.
What action is required for existing accounts that match the list?
RRBs must freeze all funds, financial assets, or economic resources held in such accounts, following the procedure detailed in paragraph 6 of the RBI circular dated November 5, 2009.
Do we need to acknowledge this circular?
Yes, the Compliance Officer/Principal Officer must send an acknowledgment of receipt to the concerned RBI Regional Office.