On October 27, 2026, the RBI directed all financial institutions to amend their systems to reflect changes in the UNSC 1267/1989 ISIL (Da'esh) & Al-Qaida Sanctions List, including amendments to three entries under Section 51A of UAPA, 1967.
RBI Implements UNSC Al-Qaida & ISIL Sanctions Update
The Reserve Bank of India (RBI) issued a directive on October 27, 2026, requiring all regulated financial institutions to update their compliance systems in accordance with amendments to the United Nations Security Council (UNSC) 1267/1989 ISIL (Da'esh) & Al-Qaida Sanctions List. Three entries were amended, necessitating changes to asset-freezing and customer screening procedures.
Acting under Section 51A of the Unlawful Activities (Prevention) Act, 1967, the RBI instructed banks and non-banking financial companies (NBFCs) to immediately revise their internal watchlists and ensure full operational compliance with the updated sanctions regime. The directive applies uniformly across commercial banks, payment banks, co-operative banks, and all India financial institutions.
This circular reinforces the obligation of financial entities to maintain dynamic AML systems capable of incorporating real-time international sanctions updates. Practitioners must advise clients on institutional readiness for such notifications, including audit trails and escalation protocols, to avoid regulatory scrutiny or penalties under UAPA and RBI’s AML/CFT framework.