The Reserve Bank of India issued a notification regarding the implementation of Section 51A of the Unlawful Activities (Prevention) Act, 1967. This update aligns with the recent amendments to the UNSC’s sanctions list on ISIL (Da'esh) and Al-Qaida.
Implementation of Section 51A of UAPA, 1967
The Reserve Bank of India has issued Notification No. RBI/2026-27/176, informing financial institutions about the implementation of Section 51A of the Unlawful Activities (Prevention) Act, 1967. This is in accordance with updates to the United Nations Security Council's (UNSC) 1267/1989 sanctions list concerning ISIL (Da'esh) and Al-Qaida.
The notification has been sent to various financial entities, including commercial banks, small finance banks, and asset reconstruction companies, mandating compliance with international standards for curbing finance for terrorism.
The Reserve Bank emphasizes that it is essential for these institutions to align their operations with the updated sanctions list to ensure that they do not facilitate any transactions associated with designated terrorist entities.
This move raises significant implications for practitioners in compliance and risk management sectors. They must ensure adherence to these regulations to mitigate the risks of legal penalties and enhance the integrity of financial systems.
Citations
- RBI Notification No. RBI/2026-27/176
