Executive Summary:
This document from the Reserve Bank of India (RBI) addresses updates to the UN Security Council's (UNSC) Democratic Republic of Congo (DRC) sanctions list, in accordance with Section 51A of the Unlawful Activities Prevention Act (UAPA), 1967. It refers to a Ministry of External Affairs (MEA) notification dated August 19, 2020, regarding amendments to the UNSC's list. Regulated Entities (REs) are advised to meticulously comply with the UNSC communication.
Key Points / Main Content:
* **Compliance with UAPA and UNSC Resolutions:**
* Regulated Entities (REs) must ensure they do not maintain accounts for individuals/entities appearing on UNSC lists related to terrorist links, as per Section 51A of UAPA, 1967.
* REs must also take note of other UNSC Resolutions circulated by the RBI regarding jurisdictions/entities.
* **MEA Notification and UNSC Amendments:**
* The MEA has forwarded a notification dated August 19, 2020, concerning amendments by the UNSC Committee regarding the DRC sanctions list. These amendments relate to two individuals and three entities.
* Links to the UNSC press release, sanctions measures/exemptions, the latest DRC sanctions list, and a consolidated list of Sanction Committees are provided.
* **Delisting Requests:**
* Any delisting requests received by banks, stock exchanges, depositories, SEBI-regulated intermediaries, and insurance companies must be forwarded electronically to the Joint Secretary (CTCR), MHA.
* Individuals/entities seeking removal from the DRC Sanctions List can submit their request to the Ombudsperson appointed by the UN Secretary-General.
Impact Analysis:
Regulated Entities (REs):
Impact: REs are required to update their screening processes and ensure compliance with the amended UNSC DRC sanctions list. Failure to comply may result in regulatory action.
Action Required: Review the updated UNSC list, update internal screening mechanisms, and ensure meticulous compliance. Forward any delisting requests to the Joint Secretary (CTCR), MHA.
Ministry of Home Affairs (MHA):
Impact: MHA is responsible for considering delisting requests forwarded by REs.
Action Required: Process and consider delisting requests forwarded by REs.
Individuals/Entities on Sanctions List:
Impact: Subject to financial and other sanctions.
Action Required: Can submit delisting requests to the Ombudsperson appointed by the UN Secretary-General.
Key Entities Referenced
Unlawful Activities (Prevention) Act, 1967: Indian law referred to in the context of regulated entities ensuring they do not have accounts for individuals/entities appearing in terrorist watchlists.
United Nations Security Council: International organization that approves and circulates lists of individuals and entities suspected of terrorist links.
Master Direction on Know Your Customer: RBI document providing guidelines to Regulated Entities on customer identification and due diligence.
Ministry of External Affairs: Indian government ministry that forwarded a notification regarding amendments to the UNSC's Democratic Republic of Congo sanctions list.
Democratic Republic of the Congo: Country subject to sanctions by the United Nations Security Council, with related lists updated.
United Nations Security Council Committee resolution 1533 (2004): UN committee established concerning the Democratic Republic of the Congo sanctions.
Ministry of Home Affairs: Indian government ministry that provides instructions regarding delisting requests from the Security Council's Democratic Republic of Congo Sanctions List.
Securities and Exchange Board of India: Regulatory body for stock exchanges depositories, intermediaries.
RBI/2020-21/25
DOR.AML.BC.No.8/14.06.001/2020-21 August 21, 2020
The Chairpersons/ CEOs of all the Regulated Entities
Madam/Dear Sir,
Implementation of Section 51A of UAPA, 1967: Updates to UNSC’s Democratic Republic
of Congo List
Please refer to Section 51 of our Master Direction on Know Your Customer dated February 25,
2016 as amended on January 09, 2020, in terms of which “Regulated Entities (REs) shall ensure
that in terms of Section 51A of the Unlawful Activities (Prevention) (UAPA) Act, 1967, they do
not have any account in the name of individuals/entities appearing in the lists of individuals and
entities, suspected of having terrorist links, which are approved by and periodically circulated by
the United Nations Security Council (UNSC).” Further, in terms of Section 53 of the Master
Direction, other UNSC Resolutions circulated by the Reserve Bank in respect of any other
jurisdictions/ entities from time to time shall also be taken note of by the REs.
2. In this regard, Ministry of External Affairs (MEA) has now forwarded a notification dated August
19, 2020 regarding amendment, with respect to two individuals and three entities, carried out by
the United Nations Security Council (UNSC) Committee {established pursuant to resolution 1533
(2004) concerning the Democratic Republic of the Congo (DRC)} in the sanctions list concerning
DRC.
a) The UNSC press release concerning the amendment to the list is available at URL:
https://www.un.org/press/en/2020/sc14280.doc.htm
b) The details of the sanctions measures and exemptions are available at the following URL:
https://www.un.org/securitycouncil/sanctions/1533/exemptions/arms-embargo
c) Link to the latest version of the Sanctions list pertaining to DRC is:
www.un.org/securitycouncil/sanctions/1533/materials
d) An updated and consolidated list of all the Sanction Committees is available at the
following URL:
https://www.un.org/securitycouncil/content/un-sc-consolidated-list
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"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."3. As per the instructions from the Ministry of Home Affairs (MHA), any request for delisting
received by any bank, stock exchanges/ depositories, intermediaries regulated by SEBI and
Insurance companies is to be forwarded electronically to Joint Secretary (CTCR), MHA for
consideration. Individuals, groups, undertakings or entities seeking to be removed from the
Security Council’s Democratic Republic of Congo Sanctions List can submit their request for
delisting to an independent and impartial Ombudsperson who has been appointed by the United
Nations Secretary-General. More details are available at the following URL:
https://www.un.org/securitycouncil/ombudsperson/application
4. In view of the above, REs are advised to take note of the aforementioned UNSC
communication and ensure meticulous compliance.
Yours faithfully,
(Dr. S. K. Kar)
Chief General Manager