The Reserve Bank of India (RBI) has released two notifications regarding the implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005. These notifications provide updates on the designated list of UNSC-sanctioned individuals and entities. This article examines the notifications, highlights the amendments made to the designated list, and emphasizes the importance of compliance with the RBI’s guidelines.
Analysis: The RBI’s notifications, addressed to all regulated entities, emphasize the meticulous compliance required for implementing Section 12A of the WMD Act. The notifications refer to the Master Direction on Know Your Customer (KYC) and the Procedure for Implementation of Section 12A of the WMD Act, 2005, as laid down by the Ministry of Finance, Government of India.
The Ministry of External Affairs has provided the RBI with consolidated lists of UNSC Designated/Sanctioned Individuals and Entities related to non-proliferation involving the Democratic People’s Republic of Korea (DPRK) and Iran. The RBI has enclosed these consolidated lists in the notifications, which are essential references for implementing Section 12A of the WMD Act.
The RBI highlights that the designated list provided is crucial for the implementation of the WMD Act and requests all regulated entities to ensure meticulous compliance. It also directs entities to refer to the UN Security Council’s website for the latest versions of the UNSC sanctions lists on DPRK and Iran.
Conclusion: The RBI’s notifications regarding the implementation of Section 12A of the WMD Act and the updates to the designated list of UNSC-sanctioned individuals and entities emphasize the importance of compliance by regulated entities.
Reserve Bank of India
RBI/2023-24/47
DOR.AML.REC.23/14.06.001/2023-24
July 04, 2023
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 (Consolidated)
Please refer to Section 52 and Section 53 of our Master Direction on Know Your Customer dated February 25, 2016 as amended on May 04, 2023 (MD on KYC), in terms of which “the 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” as laid down in terms of Section 12A of the WMD Act, 2005 vide Order dated January 30, 2023 by the Ministry of Finance, Government of India (Ref. Annex III of the MD on KYC).”
2. In this connection, the Ministry of External Affairs (MEA), Government of India has informed about the Consolidated Lists of UNSC Designated / Sanctioned Individuals and Entities under the UNSC Resolutions relating to non-proliferation on the Democratic People’s Republic of Korea (DPRK) and Iran. The consolidated lists are enclosed in the Annex. It is also informed that this is the ‘designated list’ as referred in Para 2.1 and other relevant Paras of the aforementioned Order dated January 30, 2023, and for the purposes of implementation of the provisions of Section12A of the WMD Act 2005.
3. The latest version of the UNSC sanctions lists on DPRK & Iran are accessible on the UN Security Council’s website at the following URLs:
https://www.un.org/securitycouncil/sanctions/1718
https://www.un.org/securitycouncil/content/2231/list
4. All REs are advised to take note of the aforementioned communications and ensure meticulous compliance.
Yours faithfully,
(Santosh Kumar Panigrahy)
Chief General Manager
Encl: As above
****
Reserve Bank of India
RBI/2023-24/48
DOR.AML.REC.24/14.06.001/2023-24
July 04, 2023
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 and Section 53 of our Master Direction on Know Your Customer dated February 25, 2016 as amended on May 04, 2023 (MD on KYC), in terms of which “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 January 30, 2023, by the Ministry of Finance, Government of India (Annex III of the Master Direction on Know Your Customer).”
2. In this connection, a reference is 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 non-proliferation.
3. In this regard, Ministry of External Affairs (MEA), GoI has informed that the UNSC Committee established pursuant to resolution 1718(2006) 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 January 30, 2023 is amended in accordance with the changes in these relevant entries.
4. The latest version of the UNSC Sanctions lists on DPRK & Iran are accessible on the UN Security Council’s website at the following URLs:
https://www.un.org/securitycouncil/sanctions/1718
https://www.un.org/securitycouncil/content/2231/list
5. The REs are advised to take note of the aforementioned communications and ensure meticulous compliance.
Yours faithfully,
(Santosh Kumar Panigrahy)
Chief General Manager
Encl: As above
