The Reserve Bank of India (RBI) issued a crucial notification (RBI/2023-24/133) addressed to the Chairpersons and CEOs of all regulated entities regarding the designation of an individual under the Unlawful Activities (Prevention) Act (UAPA) and their listing in the Fourth Schedule. This article delves into the details of the notification and its implications for regulated entities.
The notification, dated March 08, 2024, emphasizes the meticulous compliance required with the UAPA and its subsequent amendments. It refers to the Master Direction on Know Your Customer (KYC) and highlights the procedure laid down in the UAPA Order dated February 02, 2021. The Master Direction mandates reporting of account details resembling those of listed individuals/entities to the Financial Intelligence Unit-India (FIU-IND) and advising the Ministry of Home Affairs as required.
Furthermore, the notification draws attention to the Gazette notification dated March 07, 2024, issued by the Ministry of Home Affairs (MHA), declaring an individual as a ‘Terrorist’ and listing them in Schedule IV of the UAPA. The individual, Mohammad Qasim Gujjar @ Salman @ Suleman, is specifically mentioned along with the relevant statutory order (S.O.) number.
Regulated entities are urged to adhere to the Gazette notification for necessary compliance and stay vigilant for future amendments to Schedule I and IV of the UAPA. The RBI underscores the importance of immediate compliance with any such amendments to ensure the integrity and security of the financial system.
The RBI’s notification underscores the critical importance of regulatory compliance in the context of national security and anti-money laundering efforts. By notifying regulated entities of designations under the UAPA and listing in the Fourth Schedule, the RBI aims to reinforce the robustness of the financial system and mitigate risks associated with unlawful activities. It serves as a reminder for entities to stay abreast of regulatory updates and enact necessary measures to uphold integrity and security.
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Reserve Bank of India
RBI/2023-24/133
DOR.AML.REC.82/14.06.001/2023-24
March 08, 2024
The Chairpersons / CEOs of all the Regulated Entities
Madam / Dear Sir,
Designation of an individual under clause (a) of Sub-section (1) and Sub-section (2) of Section 35 of the Unlawful Activities (Prevention) Act (UAPA), 1967 and listing in the Fourth Schedule of the Act- Reg.
In terms of Section 51 read with Section 53A of our Master Direction on Know Your Customer dated February 25, 2016 as amended on January 04, 2024, “The procedure laid down in the UAPA Order dated February 02, 2021 (Annex II of this Master Direction), shall be strictly followed and meticulous compliance with the Order issued by the Government shall be ensured.” Further, Section 51(b) of the aforementioned Master Direction states that, “Details of accounts resembling any of the individuals/entities in the lists shall be reported to FIU-IND apart from advising Ministry of Home Affairs as required under UAPA notification dated February 02, 2021 (Annex II of this Master Direction)”. In this regard, it is highlighted that the UAPA Order in Annex II of the MD on KYC, 2016 shall also apply to amendments carried out in Schedule I and IV of the UAPA, 1967 apart from the UNSC lists mentioned in the Order.
2. In this connection, please refer to the Gazette notification dated March 07, 2024 of the MHA in respect of an individual who has been declared as ‘Terrorist’ and has been listed in the Schedule IV of the UAPA 1967, under clause (a) of Sub-section (1) and Sub-section (2) of Section 35 of UAPA 1967. The Statutory Order (S.O.) number and the respective entry is as provided below:
|
S.O. Numbers |
Entries |
| 1120(E) | 57. Mohammad Qasim Gujjar @ Salman @ Suleman |
3. Regulated Entities (REs) are advised to take note of the aforementioned Gazette notification issued by MHA for necessary compliance. REs shall also take note of any future amendments to Schedule I and IV of the UAPA, 1967, for immediate necessary compliance.
Yours faithfully,
(Saidutta Sangram Keshari Pradhan)
General Manager
