What changed
The Chairman of the UN Security Council's 1988 Committee issued a note dated February 14, 2012, updating the sanctions list of individuals and entities linked to the Taliban. RBI circular DNBS(PD).CC. No 268/03.10.42/2011-12 dated April 04, 2012, requires NBFCs to incorporate these updates into their compliance checks.
What it means for you
NBFCs must now use the revised UN list for customer due diligence. This tightens screening for both new and existing accounts to prevent any association with sanctioned Taliban-linked entities. Non-compliance could lead to regulatory action.
What you must do
- Update your internal sanctions list with the latest UN 1988 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 and report any matches with the updated list.
- Follow the procedures under Section 51-A of UAPA, 1967, as referenced in the circular title.
Who it affects
All Non-Banking Financial Companies (NBFCs), Residuary Non-Banking Companies (RNBCs)
Where can I find the updated UN 1988 Sanctions List?
The complete list is available on the UN website at http://www.un.org/sc/committees/1988/list.shtml.
What should I do if I find a match in an existing account?
You must follow the procedures under Section 51-A of UAPA, 1967, and report to the relevant authorities as per RBI instructions.