What changed
RBI issued a circular on April 12, 2012, requiring all Payment System Operators to update their records with the latest UN Al-Qaida sanctions list. Operators must ensure no new account is opened for listed individuals/entities and scan existing accounts for matches. Freezing of assets must follow the procedure outlined in the September 17, 2009 circular.
What it means for you
Banks and payment operators must integrate the updated UN sanctions list into their customer onboarding and monitoring systems. Non-compliance could lead to regulatory action. This reinforces India's commitment to anti-money laundering and counter-terrorism financing under UAPA.
What you must do
- Update your internal sanctions list with the latest UN Al-Qaida list from the provided UN website.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing customer accounts to identify any matches with the sanctions list.
- Freeze funds and assets of any matched individuals/entities as per the September 17, 2009 circular.
- Ensure nodal officer acknowledges receipt of this circular.
Who it affects
All Payment System Operators authorized under PSS Act, 2007, Banks offering payment services, Compliance and AML teams
What is the source of the sanctions list mentioned in the circular?
The list is the UN Security Council's Al-Qaida Sanctions List, updated by the 1267/1989 Committee. It is available on the UN website.
What action is required for existing accounts that match the list?
PSOs must freeze funds, financial assets, or economic resources of such accounts as detailed in paragraph 6 of the September 17, 2009 circular.
Who should acknowledge receipt of this circular?
The Nodal Officer or Principal Officer of the Payment System Operator must acknowledge receipt.