Following the UAPA designation of Shahzad Bhatti Network as a terrorist organisation, RBI has directed all regulated entities to freeze assets and cease transactions linked to the entity.
RBI Enforces UAPA Asset Freeze Against Shahzad Bhatti Network
The Reserve Bank of India (RBI) has issued binding directions to all regulated entities (REs), including banks and financial institutions, to comply with the Unlawful Activities (Prevention) Act (UAPA) following the official notification listing the Shahzad Bhatti Network as a terrorist organisation.
Pursuant to the Ministry of Home Affairs’ notification under UAPA, RBI has mandated immediate freezing of assets, accounts, and financial transactions related to the named network. Regulated entities are required to conduct due diligence, report existing or new links, and file requisite STRs (Suspicious Transaction Reports) with the Financial Intelligence Unit (FIU-IND).
This action underscores the integration of financial regulation with national security frameworks. Non-compliance may lead to penalties under both UAPA and FEMA. Financial institutions must update their watchlists and KYC protocols accordingly to prevent facilitation of terrorist financing.
Citations
- Unlawful Activities (Prevention) Act, 1967