The Reserve Bank of India (RBI) has directed all regulated entities, including banks and financial institutions, to update their customer screening systems in line with the latest amendments to the United Nations Security Council (UNSC) sanctions list. The directive comes under the provisions of Section 51A of the Unlawful Activities (Prevention) Act (UAPA), 1967.
The Ministry of External Affairs (MEA) has informed the RBI about a recent update by the UN Security Council Committee concerning individuals and entities linked to ISIL (Da’esh) and Al-Qaida. The latest UNSC press release, dated October 21, 2025, includes amendments to the entry of one individual — Abd El Kader Mahmoud Mohamed El Sayed, originally listed in 2002.
Under the UAPA framework, regulated entities are required to ensure that they do not maintain any accounts or undertake financial transactions with individuals or organizations appearing on the UNSC’s list of persons linked to terrorism. Banks must immediately verify their customer databases against the updated list, and if a match is found, freeze the account without delay and report it to the Ministry of Home Affairs (MHA) and the Financial Intelligence Unit (FIU-IND).
What is UAPA?
The UAPA, or Unlawful Activities (Prevention) Act, 1967, is India’s main anti-terror law. It gives the government wide powers to act against individuals and organizations involved in unlawful or terrorist activities that threaten the sovereignty and security of the country. The primary aim of UAPA is to prevent activities that challenge India’s unity, integrity, and security, including terrorism and funding of terrorism. India is a signatory to UN conventions against terrorism. So, whenever the UN Security Council adds or updates names on its terrorism sanctions list, the Indian government — through the Ministry of External Affairs (MEA) — informs the RBI and other regulators to take action as per Section 51A of UAPA.
Duties for Bank
Banks must:
- Regularly check customer lists against the UNSC terror list.
- Freeze any accounts that match.
- Report to MHA and FIU-IND immediately.
