Introduction: The Reserve Bank of India (RBI) recently issued a circular, DOR.AML.REC.14/14.06.001/2024-25, addressing amendments to the Weapons of Mass Destruction (WMD) Act compliance. This article delves into the details of the circular, its implications, and the importance of regulatory adherence.
Detailed Analysis:
1. Regulatory Directive Overview: The circular highlights the implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005. It mandates regulated entities (REs) to ensure meticulous compliance with the prescribed procedures.
2. Verification Obligations: RBI emphasizes REs to verify the ‘UNSCR 1718 Sanctions List of Designated Individuals and Entities’ daily. This verification process is crucial to incorporate any modifications to the list, ensuring compliance with relevant orders and resolutions.
3. Communication of Amendments: The circular refers to previous communications, particularly circular DOR.AML.REC.23/14.06.001/2023-24, which communicates the Consolidated Lists of UNSC Designated/Sanctioned Individuals and Entities. Amendments to these lists are notified periodically.
4. MEA Notifications: Ministry of External Affairs (MEA), Government of India, notifies amendments enacted by the UNSC Committee. These amendments are reflected in the designated list mentioned in the circular, necessitating compliance from REs.
5. Accessibility of UNSC Sanctions Lists: RBI provides URLs for accessing the latest version of the UNSC Sanctions lists on the Democratic People’s Republic of Korea (DPRK). This accessibility facilitates REs in staying updated with regulatory requirements.
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Reserve Bank of India
RBI/2024-25/21
DOR.AML.REC.14/14.06.001/2024-25
April 16, 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 Lists of UNSC Designated / Sanctioned Individuals and Entities under the UNSC Resolutions relating to nonproliferation. Amendments to the entries in the Lists are carried out from time to time.
The last such amendment was notified vide our circular DOR.AML.REC.83/14.06.001/2023-24 dated March 11, 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 an entry 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 the relevant entry.
5. The latest version of the UNSC Sanctions lists on DPRK is accessible on the UN Security Council’s website at the following URLs:
https://www.un.org/securitycouncil/sanctions/1718
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
