What changed
RBI has forwarded six new UN notes (dated Oct 5, 2011 to Dec 30, 2011) that update the Al-Qaida Sanctions List of individuals and entities. Urban co-operative banks must now incorporate these changes into their customer screening process.
What it means for you
Banks must immediately update their internal sanctions lists and ensure no new account is opened for any listed individual/entity. Existing accounts must be scanned for matches, and if found, freezing of funds must follow the procedure outlined in the November 16, 2009 circular. Non-compliance could lead to regulatory action.
What you must do
- Update your internal UNSCR 1267/1989 sanctions list with the six new annexes provided.
- Screen all new account applications against the updated list before opening.
- Scan all existing accounts to identify any linked to listed individuals/entities.
- Freeze any matched accounts as per paragraph 7 of the November 16, 2009 circular.
- Ensure the Compliance Officer acknowledges receipt of this circular.
Who it affects
Primary (Urban) Co-operative Banks, Compliance Officers / Principal Officers of these banks
What is the source of the updated list?
The updates come from six notes from the Chairman of the UN Security Council's 1267/1989 Committee, forwarded by the Ministry of External Affairs.
What should we do if we find a match in existing accounts?
Follow the freezing procedure detailed in paragraph 7 of the RBI circular dated November 16, 2009, which covers freezing of funds, financial assets, or economic resources.
Where can we find the full list?
The complete Al-Qaida Sanctions List is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.