The Reserve Bank of India has issued directions to financial institutions for immediate implementation of amendments to the UNSC 1267/1989 ISIL (Da'esh) & Al-Qaida sanctions list under Section 51A of the UAPA, 1967, requiring freezing of assets of three individuals.
UNSC Sanctions List Updated: RBI Directs Immediate Compliance
The Reserve Bank of India (RBI), on October 19, 2026, issued a notification directing all regulated entities—including commercial banks, non-banking financial companies (NBFCs), urban cooperative banks, and payments platforms—to implement updates to the United Nations Security Council’s (UNSC) 1267/1989 sanctions list pertaining to ISIL (Da'esh) and Al-Qaida. The directive stems from the invocation of Section 51A of the Unlawful Activities (Prevention) Act, 1967, which mandates India’s compliance with UNSC-imposed financial sanctions.
Three entries on the list have been amended, requiring Indian financial institutions to immediately freeze funds and economic resources of designated individuals without prior notice. Entities are instructed to ensure no transactions are processed involving the listed persons and to report compliance to the Financial Intelligence Unit-India (FIU-IND). This action reinforces India’s alignment with global counter-terrorism financing standards under the Financial Action Task Force (FATF) framework.
"In compliance with UNSC Resolution 1267 (1999) and subsequent amendments, regulated entities shall take immediate action to give effect to the updated sanctions list,"the circular emphasized. Legal teams must review customer due diligence processes and enhance real-time screening protocols to avoid regulatory breaches. Non-compliance may attract penalties under the UAPA and RBI supervisory actions.
Citations
- Section 51A, Unlawful Activities (Prevention) Act, 1967
