What changed
RBI has circulated an updated Al-Qaida Sanctions List from the UN Security Council's 1267/1989 Committee, received via Ministry of External Affairs. Banks must now use this revised list for customer screening and account freezing actions.
What it means for you
Banks must immediately update their internal sanctions databases with the new list. Failure to screen new or existing accounts against this list could lead to regulatory action. The freezing of funds and assets of listed entities is mandatory under the UAPA Order.
What you must do
- Update your internal UN sanctions list with the latest Al-Qaida designations from the UN website.
- Screen all new account applications against the updated list before onboarding.
- Run a one-time scan of all existing accounts to identify any matches with the new list.
- Freeze funds and financial assets of any matched individuals/entities as per paragraph 6 of earlier circulars.
- Have your Compliance/Principal Officer acknowledge receipt of this circular to the respective RBI 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 we find the complete updated Al-Qaida sanctions list?
The full consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.
What action is required if we find an existing account linked to a listed entity?
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 referenced in this notification.
Do we need to acknowledge receipt of this circular?
Yes, the Compliance Officer or Principal Officer must send an acknowledgment to the concerned RBI Regional Office.