What changed
RBI has issued a circular enclosing the Ministry of External Affairs order of November 4, 2011, which implements UN Security Council Resolution 1929 (2010) on non-proliferation. Co-operative banks are now required to screen all account openings and existing transactions against the listed individuals/entities.
What it means for you
Banks must integrate the sanctions list into their KYC and transaction monitoring processes to identify and report any matches. Non-compliance could lead to regulatory action, as this is part of India's international obligations under UN sanctions.
What you must do
- Obtain the Gazette notification listing individuals/entities under UNSCR 1929 and distribute it to all branches.
- Cross-check all new account applications and existing account transactions against the list.
- Report any matching accounts or transactions to RBI and FIU-IND immediately.
- Ensure the 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 of co-operative banks
What is UNSCR 1929 (2010)?
It is a United Nations Security Council resolution imposing sanctions on Iran related to non-proliferation, requiring member states to freeze assets and prevent transactions with designated individuals/entities.
Do we need to report only new accounts?
No, the circular requires cross-checking both new account applications and transactions in existing accounts against the list.
To whom should we report matches?
Report accounts that resemble listed individuals/entities to both the Reserve Bank of India and the Financial Intelligence Unit-India.