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RBI asks banks to freeze accounts of 7 more terror groups

The Reserve Bank of India has asked public sector and other banks to guard against any transactions by seven foreign terrorist groups and not to allow any withdrawal or payment from their accounts.

"The Reserve Bank of India hereby directs that unless and until directed otherwise by the RBI, you shall secure that no withdrawal of payments from the accounts of the entities is allowed and the said accounts are not closed or transferred to any other office," the apex banks said in a recent circular to the banks.

The directives are in pursuance of the UN Security Resolution to immediately freeze the accounts of these terrorist organisations, it said.

The RBI it considers it necessary and expedient to give the directions "for the purpose of securing compliance with the provisions of the Foreign Exchange Management Act, 1999 and rules, orders and directions made thereunder".

The groups against whom the banks have been told to be on guard are:

• Holy Land Foundation (primarily active in the US),

• Beit El-Mal Holdings, aka Arab Palestinian Beit El-Mal Company, aka Beit Al-Mat Holdings, aka Beit El-Mal Al-Phalastini Al-Arabi Al-Mushima Al-Aama Al-Mahaduda Ltd (Translated as House of Money),

• P.O Box No 662 Ramallah, Gaza/West Bank,

• Al-Aqsa Islamic Bank, aka Al-Aqsa Al-Islami Bank,

• P.O Box 3753 A-Beireh,

• Palestinian Autonomous Areas,

• Rammallah 11970, West Bank, Israel.

The RBI had in another circular recently asked the banks to keep a 'watchful eye' on the transactions of 23 organisations identified by the Union government as 'terrorist outfits' in line with the POTO ordinance.

The list included Lashkar-e-Toiba, Jaish-e-Mohammed, Harkat-ul-Mujahideen who operate from Pakistan, militant organisations from North-Eastern region like United Liberation Front of Assam, the banned Students Islamic Movement of India and Liberation Tigers of Tamil Eelam.

The 23 on the list are groups based in Pakistan or India, except the LTTE.

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