RBI notifies financial entities of new terrorist organisation designated under UAPA, 1967. Mandates immediate asset freezes and compliance with surveillance protocols.
New Terrorist Organisation Designated Under UAPA
The Reserve Bank of India has notified the financial sector of the designation of a terrorist organisation under clause (a) of sub-section (1) of Section 35 of the Unlawful Activities (Prevention) Act, 1967 (UAPA), effective September 24, 2026. The organisation has been added to the First Schedule of the UAPA.
All regulated entities, including banks, NBFCs, and financial institutions, are directed to immediately freeze assets, prevent access to funds, and report any related transactions to the Financial Intelligence Unit (FIU-IND). The directive reinforces compliance with UNSC Resolution 1373 and domestic counter-terrorism financing obligations.
Legal and compliance teams must update screening matrices and conduct retrospective checks. This notification underscores the RBI’s role in inter-agency coordination on national security and the legal imperative for prompt action in designating and enforcing restrictions against proscribed entities.
Citations
- Section 35(1)(a), UAPA, 1967
