RBI directs regulated entities to implement revised UNSC sanctions list under Section 51A of UAPA. Updates affect terrorist designation tracking and freezing obligations.
RBI Amends UAPA Compliance for UNSC Sanceptions Enforcement
The Reserve Bank of India (RBI) has issued a circular requiring all regulated entities to comply with amendments to three United Nations Security Council (UNSC) sanctions entries concerning individuals linked to ISIL and Al-Qaida. The updates fall under Section 51A of the Unlawful Activities (Prevention) Act (UAPA), empowering RBI to direct enforcement of UNSC resolutions on terrorist financing.
The affected entries involve name corrections, aliases, and organizational affiliations. Financial institutions must now update their screening systems to reflect the revised designations, freeze related assets immediately, and report compliance within prescribed timelines. RBI emphasized that even minor orthographic changes require systemic updates to avoid compliance gaps.
This directive reinforces the statutory duty of banks and NBFCs to maintain real-time alignment with international sanctions lists. Legal teams must ensure their AML/KYC frameworks include dynamic monitoring protocols and periodic audits to mitigate enforcement risks under PMLA and UAPA.
Citations
- Unlawful Activities (Prevention) Act, Section 51A
