The Government of India has designated a new terrorist organisation under Section 35(1)(a) of UAPA, 1967, requiring financial institutions to freeze associated assets and report compliance immediately.
Terrorist Organisation Designated Under UAPA
On September 24, 2026, the Government of India notified a designation of a terrorist organisation under clause (a) of sub-section (1) of Section 35 of the Unlawful Activities (Prevention) Act, 1967. The entity has been formally added to the First Schedule of the UAPA, triggering mandatory asset freezes and reporting obligations for all financial institutions across India.
The notification, issued by the RBI to all regulated entities, underscores compliance duties under India’s counter-terrorism financing regime. Covered institutions—including commercial banks, NBFCs, co-operative banks, and payments banks—must immediately screen their portfolios, freeze funds or economic resources owned or controlled by the designated organisation, and report findings to the Financial Intelligence Unit-India (FIU-IND).
This designation enables law enforcement and regulatory agencies to act against individuals or entities supporting the organisation. Corporate and banking lawyers must advise clients on enhanced due diligence and screening protocols. Legal risk assessments for ongoing transactions involving non-state actors or cross-border funding must factor in the expanded scope of UAPA designations.
Citations
- Unlawful Activities (Prevention) Act, 1967, Section 35(1)(a)
