RBI directed banks to update their list of terrorists or terror- related funding entities

On Wednesday the Reserve Bank issued notification to the banks and financial institutions that, they should update their list of terrorists or terror-related organizations with the latest UN list of organizations linked with Al-Qaida and Taliban.

The RBI notification stated, "Banks, financial institutions are required to update the consolidated list of individuals, entities as circulated by Reserve Bank and before opening any new account, it should be ensured that the name/s of the proposed customer does not appear in the list.”

"Further, banks should scan all existing accounts to ensure that no account is held by or linked to any of the entities or individuals included in the list".

Before this in August also RBI has issued a similar notification to scheduled commercial banks and financial institutions in which it had instructed them to keep vigil on the new accounts being opened, so that no account is opened or maintained for entities mentioned in the United Nations.

In October, again, it asked central and state co-operative banks to keep a close watch on UN-listed terror funding bodies that might use the banking operations in the country to fund terrorist activities.

Also the market regulator SEBI had issued instructions to all stock exchanges and other securities intermediaries to keep vigil on UN-listed terror funding entities.

As per the RBI rules, in case particulars of any such entity is received then the home ministry would initiate a verification which will be done by the state police and the central agencies.

On getting the confirmation that the properties are owned by for the benefit of the designated individuals/entities, within 24 hours order to freeze the assets will be issued.