What changed
RBI has circulated the latest UN Security Council 1267/1989 Committee's Al-Qaida Sanctions List update, received via Ministry of External Affairs on February 23, 2012. Banks must now use this updated list for customer screening and account monitoring.
What it means for you
Co-operative banks and RRBs must immediately incorporate the revised UN sanctions list into their AML/KYC checks. Failure to identify and freeze accounts of listed entities could lead to regulatory action. This reinforces the government's commitment to combating terrorist financing under UAPA, 1967.
What you must do
- Update your internal sanctions list with the latest UN Al-Qaida Sanctions List from the UN website.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing customer accounts to identify any matches with the updated list.
- Freeze funds and financial assets of any matched individuals/entities as per earlier UAPA circulars.
- Ensure your Compliance Officer/Principal Officer acknowledges receipt of this circular to your Regional Office.
Who it affects
State Co-operative Banks, Central Co-operative Banks, Regional Rural Banks, Compliance Officers / Principal Officers of these banks
Where can I find the latest Al-Qaida Sanctions List?
The complete consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml. Use this for updating your internal records.
What action is required if we find a match in an existing account?
You must freeze the funds, financial assets, or economic resources held in that account, following the procedure detailed in paragraph 6 of the earlier UAPA circulars (dated October 29, 2009 and November 5, 2009).
Do we need to report back to RBI after updating the list?
Yes, your Compliance Officer/Principal Officer must acknowledge receipt of this circular to the concerned Regional Office of RBI.