Use of bank account by terrorist groups

Use of bank account by terrorist groups

Reserve Bank of India (RBI), in terms of instructions contained in the guidelines on Know Your Customer (KYC) norms, have advised the banks that before opening any new account it should be ensured that the identity of the customer does not match with any person with known criminal background or with banned entities such as individual terrorist or terrorist organisation etc. Banks are stipulated to file suspicious transaction reports pertaining to remittances/withdrawals from bank accounts and in respect of account holder.

Financial Intelligence Unit – India (FIU-IND) has been set-up to receive information relating to certain types of transactions including suspicious transaction from financial sector, analyze received information and disseminate information in appropriate cases to relevant intelligence/law enforcement agencies.

FIU-IND has received certain suspicious reports on account of matches of certain details of terrorist whose names are appearing in UN Consolidated lists and other lists. In most of the cases the matches were partial or incomplete. Enhanced due diligence was conducted by FIU-IND and thereafter information was disseminated in appropriate case to relevant law enforcement/intelligence agencies. As reported by RBI, two bank accounts have been frozen under the provisions of the Unlawful Activities (Prevention) Act, 1967.