What changed
RBI has circulated six UN notes (dated Oct 5, Oct 17, Nov 30, Dec 13, Dec 28, and Dec 30, 2011) containing updates to the Al-Qaida Sanctions List. Banks must incorporate these changes into their customer screening databases immediately.
What it means for you
Banks must ensure no new account is opened for any listed individual/entity and that existing accounts are scanned for matches. Any identified accounts must be frozen and reported as per the UAPA Order of August 27, 2009. Non-compliance could lead to regulatory action.
What you must do
- Update your internal sanctions list with the six new UN notes provided in the annexes.
- Screen all new account applications against the updated Al-Qaida list before onboarding.
- Conduct a retrospective scan of all existing accounts to identify any linked to listed entities.
- Freeze funds and economic resources of matched accounts as per paragraph 6 of the September 17, 2009 circular.
- Ensure the Compliance 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 sanctions list?
The list is from the UN Security Council's 1267/1989 Committee's Al-Qaida Sanctions List, forwarded by the Ministry of External Affairs.
What action is required for existing accounts that match the list?
Banks must freeze the funds, financial assets, or economic resources held in such accounts, following the procedure in paragraph 6 of the September 17, 2009 circular.
Where can I find the complete list of sanctioned individuals/entities?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.