Page 54 - Banking Finance April 2022

RBI CIRCULAR

21.04.141/2021-22 dated August 25, 2021 – 2. In this connection, Ministry of External Affairs (MEA)
‘Classification, Valuation and Operation of Investment has informed about UNSC press release (SC/14822
Portfolio of Commercial Banks (Directions), 2021’ dated 07 March 2022) regarding addition of 1 entry
(hereinafter referred as ‘Master Direction’). (entity) [QDe.168 Name: KHATIBA AL-TAWHID WAL-
JIHAD (KTJ) A.k.a.: a) JANNAT OSHIKLARI b) Jama`at al-
2. The Master Direction outlines the prudential treatment
Tawhid wal-Jihad F.k.a.: JANNAT OSHIKLARI] to UNSC’s
for investment in Venture Capital Funds (VCFs). We have
received queries from banks regarding the applicability 1267/1989 ISIL (Da’esh) & Al-Qaida Sanctions List by the
of these instructions for investment in Alternative UNSC Committee established pursuant to Resolutions
Investment Funds (AIFs). 1267 (1999), 1989 (2011) and 2253 (2015) concerning
ISIL (Da’esh), Al-Qaida, and associated individuals,
3. Accordingly, on a review, it has been decided that the groups, undertakings and entities regarding changes in
investment in Category I and Category II AlFs, which the List of individuals and entities subject to the assets
includes VCFs, shall receive the same prudential freeze, travel ban and arms embargo set out in
treatment as applicable for investment in VCFs. paragraph 1 of UNSC resolution 2368 (2017), and
4. In addition, based on feedback from banks, clarifications adopted under Chapter VII of the Charter of the United
/ updates have been provided regarding section Nations
4(a)(vii), 10(c)(ix), 12(ii)(b), 12(ii)(d)(ix), 13(iv)(b), 16(i), The UNSC press release concerning amendments to the
16(ii), 18(ii)(e)(ii) and Annex II of the Master Direction. list is available at URL: https://www.un.org/

5. The relevant sections of the Master Direction have securitycouncil/sanctions/1267/press-releases
been amended to reflect the aforementioned changes. 3. Updated lists of individuals and entities linked to ISIL
Applicability (Da'esh), Al-Qaida and Taliban are available at:
6. This circular is applicable to all Commercial Banks www.un.org/securitycouncil/sanctions/1267/
(excluding Regional Rural Banks). aq_sanctions_list
7. These instructions shall come into force with immediate https://www.un.org/securitycouncil/sanctions/1988/
effect. materials
4. The details of the sanction measures and exemptions
(Usha Janakiraman) are available at the following URL: https://
Chief General Manager w w w.un.org / securitycounci l/sanctions/
1267#further_information
Implementation of Section 51A of UAPA,
5. As per the instructions from the Ministry of Home
1967: Updates to UNSC’s 1267/ 1989 ISIL Affairs (MHA), any request for delisting received by any
(Da'esh) & Al-Qaida Sanctions List: Regulated Entity (RE) is to be forwarded electronically
to Joint Secretary (CTCR), MHA for consideration.
Addition of 1 entry (entity)
Individuals, groups, undertakings or entities seeking to
RBI/2021-2022/183 be removed from the Security Council’s ISIL (Da'esh)
and Al-Qaida Sanctions List can submit their request for
March 10, 2022
delisting to an independent and impartial
1. Please refer to Section 51 of our Master Direction on Ombudsperson who has been appointed by the United
Nations Secretary-General. More details are available
Know Your Customer dated February 25, 2016 as
amended on May 10, 2021, in terms of which at the following URL: https://www.un.org/
“Regulated Entities (REs) shall ensure that in terms of securitycouncil/ombudsperson/application
Section 51A of the Unlawful Activities (Prevention) 6. In view of the above, REs are advised to take note of
(UAPA) Act, 1967, they do not have any account in the the aforementioned UNSC communication and ensure
name of individuals/entities appearing in the lists of meticulous compliance
individuals and entities, suspected of having terrorist
links, which are approved by and periodically circulated (Sidharth Prakash)
by the United Nations Security Council (UNSC).” Deputy General Manager

54 | 2022 | APRIL | BANKING FINANCE