What changed
RBI has circulated an updated Al-Qaida Sanctions List from the UN Security Council's 1267/1989 Committee, received via the Ministry of External Affairs on March 6, 2012. Banks must now use this latest list for customer screening and account freezing actions.
What it means for you
Banks must immediately update their internal sanctions lists and ensure no new accounts are opened for any individual or entity on the updated Al-Qaida list. Existing accounts must be reviewed to identify and freeze any linked assets, as per the UAPA Order of August 27, 2009. Non-compliance could lead to regulatory action.
What you must do
- Update your internal sanctions database with the latest UN Al-Qaida Sanctions List from the UN website.
- Before opening any new account, verify the proposed customer's name against the updated list.
- Scan all existing accounts to identify any linked to listed individuals or entities.
- Freeze funds, financial assets, or economic resources of designated entities as per paragraph 6 of the September 17, 2009 circular.
- Ensure Compliance Officer/Principal 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 on March 6, 2012.
What actions are 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, and freeze any such accounts as per the UAPA Order.
Where can I find the complete list?
The full list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.