Date: 2024-09-19Category: Not ApplicableState: Union GovernmentCountry: India
Implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005: Designated List (Amendments)
Executive Summary:
This circular from the Reserve Bank of India (RBI) addresses amendments to the designated list under Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005. It references previous guidelines and circulars, particularly the Master Direction on Know Your Customer (KYC) and the UNSCR 1718 Sanctions List. Regulated Entities (REs) are instructed to meticulously comply with the updated sanctions list and ensure that their policies reflect these changes.
Key Points / Main Content:
* **Compliance with WMD Act:**
* REs must adhere to the procedure for implementing Section 12A of the WMD Act, 2005, as per the Ministry of Finance Order dated September 01, 2023 (Annex III of the Master Direction on KYC).
* **Verification of UNSCR 1718 Sanctions List:**
* REs are required to verify the UNSCR 1718 Sanctions List daily for modifications (additions, deletions, or other changes).
* Compliance with the Implementation of Security Council Resolution on the Democratic People’s Republic of Korea Order, 2017, as amended, is mandatory.
* The list is available at: https:www.mea.gov.inImplementationofUNSCSanctionsDPRK.htm
* **Amendments to Sanctions List:**
* The Ministry of External Affairs (MEA) has informed of amendments to the UNSC Sanctions List of individuals and entities as specified with strikethrough and/or underline.
* The designated list mentioned in the Order dated September 01, 2023, is amended according to these changes.
* The latest version of the UNSC Sanctions list on DPRK is accessible at: https:www.un.orgsecuritycouncilsanctions1718
Impact Analysis:
* **Regulated Entities (REs):**
* Impact: REs must update their systems and procedures to reflect the changes in the designated lists, impacting their compliance and risk management functions.
* Action Required: REs must take note of the communications, ensure meticulous compliance with the amended lists, and update internal policies and procedures accordingly.
Key Entities Referenced
Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities Act), 2005: An Act of the Indian Parliament that aims to prevent unlawful activities related to weapons of mass destruction and their delivery systems.
Section 12A of the WMD Act, 2005: Section of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities Act), 2005, compliance of which is mandated for Regulated Entities.
Master Direction on Know Your Customer: RBI's comprehensive guidelines for Regulated Entities regarding Know Your Customer (KYC) norms and Anti-Money Laundering (AML) standards.
Ministry of Finance: The ministry of the Government of India responsible for the country's finances.
UNSCR 1718 Sanctions List: The United Nations Security Council Resolution 1718 Sanctions List of Designated Individuals and Entities related to North Korea.
Democratic Peoples Republic of Korea: The formal name for North Korea, a country subject to UN Security Council resolutions and sanctions.
Ministry of External Affairs: The Indian government agency responsible for the country's foreign relations.
Mumbai, Maharashtra: City in India where the Department of Regulation, Central Office of the Reserve Bank of India is located.
RBI/2024-25/75
DOR.AML.REC.43/14.06.001/2024-25 September 19, 2024
The Chairpersons/ CEOs of all the Regulated Entities
Madam/Dear Sir,
Implementation of Section 12A of the Weapons of Mass Destruction and their
Delivery Systems (Prohibition of Unlawful Activities) Act, 2005: Designated List
(Amendments)
Please refer to Section 52 of our Master Direction on Know Your Customer dated
February 25, 2016 as amended on January 04, 2024 (MD on KYC), in terms of which,
inter alia, “Regulated Entities (REs) shall ensure meticulous compliance with the
“Procedure for Implementation of Section 12A of the Weapons of Mass Destruction
(WMD) and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005” laid
down in terms of Section 12A of the WMD Act, 2005 vide Order dated September 01,
2023, by the Ministry of Finance, Government of India (Annex III of the Master Direction
on Know Your Customer).”
2. Further, in terms of Section 53 of our MD on KYC “the REs shall verify every day, the
‘UNSCR 1718 Sanctions List of Designated Individuals and Entities‘, as available at
https://www.mea.gov.in/Implementation-of-UNSC-Sanctions-DPRK.htm, to take into
account any modifications to the list in terms of additions, deletions or other changes and
also ensure compliance with the ‘Implementation of Security Council Resolution on
Democratic People’s Republic of Korea Order, 2017’, as amended from time to time by
the Central Government”
3. A reference is also invited to our circular DOR.AML.REC.23/14.06.001/2023-24 dated
July 04, 2023, communicating thereby the Consolidated Lists of UNSC Designated /
Sanctioned Individuals and Entities under the UNSC Resolutions relating to non-
proliferation. Amendments to the entries in the Lists are carried out from time to time.
िविनयमन िवभाग, केंद्रीय कायार्लय, 12वी ंऔर13वी ंमंिज़ल, नरीमन भवन, िवनय के शाह मागर्, नरीमन पॉइंट के पास , मुंबई - 400021
टेलीफोन/Tel No: 22820703 & 22820733 ईमेल/ Email: cgmicdor@rbi.org.in
Department of Regulation, Central Office, 12th & 13th Floor, Nariman Bhavan, Vinay K Shah Marg, Near Nariman
Point, Mumbai – 400021
"Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc. It never keeps or offers funds to anyone. Please
do not respond in any manner to such offers."The last such amendment was notified vide our circular
DOR.AML.REC.14/14.06.001/2024-25 dated April 16, 2024.
4. In this regard, Ministry of External Affairs (MEA), GoI has informed that the UNSC
Committee established pursuant to resolution 1718 (2006) has enacted the
amendments, specified with strikethrough and/or underline in an entry on its Sanctions
List of individuals and entities (enclosed with this circular). Hence, the ‘designated list’
as referred in Paragraph 2.1 and other relevant paragraphs of the aforementioned Order
dated September 01, 2023 is amended in accordance with the changes in the relevant
entry.
5. The latest version of the UNSC Sanctions list on DPRK is accessible on the UN
Security Council’s website at the following URLs:
https://www.un.org/securitycouncil/sanctions/1718
6. The REs are advised to take note of the aforementioned communications and ensure
meticulous compliance.
Yours faithfully,
(Veena Srivastava)
Chief General Manager
Encl: As above
2