Introduction: The Reserve Bank of India (RBI) recently issued a directive (RBI/2023-24/134) outlining critical updates related to the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005. This communication, addressed to the Chairpersons/CEOs of all regulated entities, emphasizes the implementation of Section 12A of the WMD Act, 2005, and introduces amendments to the designated list.
1. Compliance Framework: The directive refers to Section 52 of the Master Direction on Know Your Customer (MD on KYC), emphasizing meticulous compliance with the “Procedure for Implementation of Section 12A of the WMD Act, 2005.”
2. UNSCR 1718 Sanctions List: Section 53 of the MD on KYC requires daily verification of the ‘UNSCR 1718 Sanctions List’ available at the Ministry of External Affairs (MEA) website. This ensures awareness of modifications, additions, or deletions.
3. Consolidated List of UNSC Designations: Circular DOR.AML.REC.23/14.06.001/2023-24 dated July 04, 2023, communicated the Consolidated List of UNSC Designated/Sanctioned Individuals and Entities. Amendments to this list, including the latest on January 06, 2024, were notified.
4. UNSC Committee Amendments: The MEA, GoI, informed about amendments enacted by the UNSC Committee pursuant to resolution 1718(2006). Entries in the Sanctions List, specified with strikethrough and/or underline, are reflected in the ‘designated list.’
5. Access to UNSC Sanctions Lists: The circular provides URLs for accessing the latest UNSC Sanctions lists on DPRK, ensuring transparency and real-time information.
6. Advisory to Regulated Entities: Regulated Entities (REs) are strongly advised to note the communications, implement necessary changes, and ensure meticulous compliance with the updated directives.
7. Conclusion: The RBI’s directive serves as a crucial update for regulated entities, highlighting amendments to the Weapons of Mass Destruction Act, 2005. As geopolitical landscapes evolve, staying compliant with international sanctions is imperative. This comprehensive overview provides insights into the regulatory framework, amendments, and practical steps for REs to ensure adherence to the latest directives. Regulated entities are urged to proactively incorporate these changes to maintain a robust compliance posture in line with RBI’s guidelines.
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RESERVE BANK OF INDIA
RBI/2023-24/134
DOR. AML.REC.83/14.06.001/2023-24
March 11, 2024
The Chairpersons/ CEOs of all the Regulated Entities
Madam/Dear Sir,
Implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005: Designated List (Amendments)
Please refer to Section 52 of our Master Direction on Know Your Customer dated February 25, 2016 as amended on January 04, 2024 (MD on KYC), in terms of which, inter alia “Regulated Entities (REs) shall ensure meticulous compliance with the “Procedure for Implementation of Section 12A of the Weapons of Mass Destruction (WMD) and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005” laid down in terms of Section 12A of the WMD Act, 2005 vide Order dated September 01, 2023, by the Ministry of Finance, Government of India (Annex III of the Master Direction on Know Your Customer).”
2. Further, in terms of Section 53 of our MD on KYC, “the REs shall verify every day, the ‘UNSCR 1718 Sanctions List of Designated Individuals and Entities‘, as available at https://www.mea.gov.in/Implementation-of-UNSC-Sanctions-DPRK.htm, to take into account any modifications to the list in terms of additions, deletions or other changes and also ensure compliance with the ‘Implementation of Security Council Resolution on Democratic People’s Republic of Korea Order, 2017’, as amended from time to time by the Central Government”
3. A reference is also invited to our circular DOR.AML.REC.23/14.06.001/2023-24 dated July 04, 2023, communicating thereby the Consolidated List of UNSC Designated / Sanctioned Individuals and Entities under the UNSC Resolutions relating to nonproliferation. Certain amendments to the entries in the list were notified and the last such amendment was notified vide our circular DOR.AML.REC.67/14.06.001/2023-24 dated January 06, 2024.
4. In this regard, Ministry of External Affairs (MEA), GoI has informed that the UNSC Committee established pursuant to resolution 1718(2006) has enacted the amendments, specified with strikethrough and/or underline in certain entries on its Sanctions List of individuals and entities (enclosed with this circular). Hence, the ‘designated list’ as referred in Para 2.1 and other relevant paras of the aforementioned Order dated September 01, 2023 is amended in accordance with the changes in these relevant entries.
5. The latest version of the UNSC Sanctions lists on DPRK is accessible at the UN Security Council’s website at the following URLs:
https://www.un.org/securitycouncil/sanctions/1718/materials
6. The REs are advised to take note of the aforementioned communications and ensure meticulous compliance.
Yours faithfully,
(Saidutta Sangram Keshari Pradhan)
General Manager
Encl: As above
