What changed
RBI received updated UN Al-Qaida sanctions list from the Ministry of External Affairs via notes dated March 21 and April 2, 2012. Banks must now incorporate these changes into their customer screening processes.
What it means for you
Banks must immediately update their internal sanctions lists and screen all new and existing customers against the revised UN list. Non-compliance with UAPA orders could lead to regulatory action. This reinforces the need for robust AML/KYC systems.
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 accounts to identify any matches with the updated list.
- Freeze funds and assets of any matched individuals/entities as per the September 17, 2009 circular.
- Ensure Compliance 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, forwarded by the Ministry of External Affairs. It is available on the UN website.
What action is required for existing accounts?
Banks must scan all existing accounts to ensure no account is held by or linked to any individual or entity on the updated list.
What should we do if we find a match?
Follow the freezing procedures detailed in paragraph 6 of RBI circular dated September 17, 2009, regarding UAPA implementation.