What changed
RBI has received from Government of India (Ministry of External Affairs) copies of notes from the UN Security Council 1267 Committee (dated July 29, August 12, and August 22, 2011) containing changes to the consolidated list of individuals and entities linked to Al-Qaida. Urban Co-operative Banks must update their records with these annexes immediately.
What it means for you
Urban Co-operative Banks face heightened compliance obligations to ensure no account is held by or linked to newly designated entities. Failure to screen and freeze assets as per the UAPA Order could lead to regulatory action. This circular reinforces the need for robust KYC and ongoing monitoring systems.
What you must do
- Update the consolidated list of terrorist individuals/entities with the three new annexes provided.
- Screen all new account openings against the updated list before onboarding.
- Scan all existing accounts to identify and report any matches with the list.
- Follow the freezing procedures outlined 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
What is the source of the updated list?
The updates come from three notes from the UN Security Council's 1267 Committee, copies of which were received by RBI from the Ministry of External Affairs, dated July 29, August 12, and August 22, 2011.
What action is required for existing accounts?
Banks must scan all existing accounts to ensure no account is held by or linked to any entity or individual on the updated list. If found, freezing of funds and assets must follow the procedure in the November 16, 2009 circular.
Where can the full consolidated list be accessed?
The complete consolidated list is available on the UN website at http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.