What changed
RBI received a February 23, 2012 note from the UN Security Council's 1267/1989 Committee with changes to the Al-Qaida Sanctions List. Banks must now update their internal lists and screen all existing and new accounts against this revised list.
What it means for you
Banks must immediately incorporate the updated UN sanctions list into their KYC/AML checks. Failure to identify and freeze accounts of newly listed individuals or entities could lead to regulatory action. This reinforces the government's commitment to counter-terrorism financing under UAPA.
What you must do
- Update your internal sanctions list with the latest UN Al-Qaida list from the provided UN website.
- Screen all new account applications against the updated list before onboarding.
- Scan all existing accounts to identify any matches with the revised list.
- Freeze funds and assets of any matched accounts as per the September 17, 2009 circular's paragraph 6.
- Ensure your 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 list?
The list is from the UN Security Council's 1267/1989 Committee's Al-Qaida Sanctions List, available on the UN website.
What action is required for existing accounts?
Banks must scan all existing accounts to ensure none are held by or linked to any entity or individual on the updated list.
What should we do if we find a match?
Follow the freezing procedure detailed in paragraph 6 of RBI's circular dated September 17, 2009, which covers funds, financial assets, or economic resources.