What changed
RBI received a March 14, 2012 UN Security Council 1267/1989 Committee update to the Al-Qaida Sanctions List. Banks must now incorporate these changes into their screening process.
What it means for you
Banks must ensure no new account is opened for listed individuals/entities and scan all existing accounts for matches. Freezing of funds and assets must follow the procedure in the September 17, 2009 circular.
What you must do
- Update your internal sanctions list with the latest UN Al-Qaida Sanctions List changes.
- Screen all new account applicants against the updated list before onboarding.
- Review all existing accounts to identify and freeze any linked to listed entities.
- Ensure compliance with the UAPA Order of August 27, 2009 and related RBI circulars.
- Have your Compliance Officer acknowledge 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 Al-Qaida Sanctions Committee, forwarded by the Ministry of External Affairs.
What action is required for existing accounts?
Banks must scan all existing accounts to ensure none are held by or linked to listed individuals/entities, and freeze assets as per the September 17, 2009 circular.
Who must acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the bank must acknowledge receipt.