What changed
RBI has circulated an updated consolidated list of individuals and entities linked to Al-Qaida and Taliban, as per a July 19, 2011 note from the UN Security Council's 1267 Committee. This replaces the earlier list sent via circular dated July 7, 2011.
What it means for you
Urban co-operative banks must immediately update their internal screening databases with the new list. Failure to identify and freeze accounts of designated entities could lead to regulatory action and reputational risk. Banks must also ensure compliance with the UAPA Order of August 27, 2009 for freezing procedures.
What you must do
- Update the consolidated list of terrorist individuals/entities from the UN website and your internal systems.
- Screen all new account openings against the updated list before onboarding.
- Scan all existing accounts to identify any matches with the list and report findings.
- Follow the freezing procedures detailed in paragraph 6 of the November 16, 2009 circular for any matched accounts.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Compliance Officers / Principal Officers of Urban Co-operative Banks
Where can we find the latest consolidated list?
The complete list is available on the UN website at http://www.un.org/sc/committees/1267/consolist.shtml.
What action is required if we find a match in existing accounts?
You must freeze the funds, financial assets, or economic resources of the designated individual/entity as per the procedure in paragraph 6 of the November 16, 2009 circular.
Do we need to report compliance to RBI?
Yes, the Compliance Officer/Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office.