What changed
RBI has forwarded new UN Security Council updates to the Al-Qaida Sanctions List, received 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 ensure no new accounts are opened for listed individuals/entities. Existing accounts must be scanned for matches, and any linked accounts must be frozen as per UAPA Order procedures. Non-compliance could lead to regulatory action.
What you must do
- Update your internal sanctions list with the latest UN Al-Qaida Sanctions List changes from the enclosed notes.
- Screen all new account applications against the updated list before opening accounts.
- Scan all existing accounts to identify any linked to listed individuals/entities and freeze them as per UAPA guidelines.
- Ensure compliance with the UAPA Order dated August 27, 2009, and related RBI circulars from 2009.
- Have your Compliance Officer/Principal Officer acknowledge receipt of this circular to the concerned RBI Regional Office.
Who it affects
Regional Rural Banks (RRBs), State Co-operative Banks, Central Co-operative Banks, Compliance Officers and Principal Officers
What is the source of the updated sanctions list?
The updates come from the UN Security Council's 1267/1989 Committee's Al-Qaida Sanctions List, 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 any such accounts as per UAPA Order procedures.
Who must acknowledge receipt of this circular?
The Compliance Officer or Principal Officer of the bank must acknowledge receipt to the concerned RBI Regional Office.