Sebi asks market entities to stay cautious about funds linked to Islamic State

To safeguard Indian markets from terrorist financing risks, Sebi on Wednesday cautioned registered market intermediaries against Islamic State, Taliban and Al-Qaeda linked organisations and individuals.

Sebi has issued circular containing 'United Nations Security Council's Taliban and Al-Qaeda sanctions list' to registered market intermediaries to take note of the updated list and "ensure compliance with the same".

The United Nations' Security Council (UNSC) came out with the updated list on January 14 this year.

In a statement, Sebi advised market intermediaries to ensure compliance with instructions pertaining to UAPA or The Unlawful Activities (Prevention) Act, and update the list of individuals or entities as circulated by the regulator and ensure that the accounts are not opened in the name of anyone whose name appears in updated list of individuals.

Under anti-money laundering guideline and obligation for combating terrorism financing, Sebi has directed all registered intermediaries to ensure that "accounts are not opened in the name of anyone whose name appears in updated list of individuals and entities which are subject to various sanction measures such as freezing of assets/accounts, denial of financial services etc, approved by the security council committee established pursuant to various United Nations' Security Council Resolutions".

"Registered intermediaries shall continuously scan all existing accounts to ensure that no account is held by or linked to any of the entities or individuals included in the list," it added.