The Implementation Of Section 12 A Of The Weapons Of Mass Destruction And Their Delivery Systems Prohibition Of Unlawful Activities Act 2005: Designated List Consolidated

It was 19th of April of this year when the Insurance Regulatory and Development Authority of India issued a circular on the procedure with respect to the implementation of Section 12A of “The Weapons of Mass Destruction and their Delivery Systems Act, 2005”.

Section 12 A of this Act specifically forbids the financing of any sort of prohibited activity specifically mentioned under the Act.

The various Financial Institutions ought to verify the particulars of the entries made and individuals involved, who are parties to the financial transactions and ought to match it with the particulars of the designated list. In case there happens to be a match, the REs shall not carry out such transactions and need to immediately inform the transaction details. These details need to have all the factors associated with the funding system, the various financial institutions, and the economic resources involved.

An inspection also needs to be made by these Financial Institutions to run a check on the provided parameters when the time of establishing a relation with a customer arises. Again, they need to run verification on whether the individuals and the entities in the designated list hold any sort of funds, financial assets, or economic resources, on a regular basis.

And, in case these particulars of the customers happen to match with the particulars of the so provided list, the REs need to inform all the particulars of the funds, the information regarding the financial assets and the economic resources or services which were held in the form of bank accounts, the insurance policies or the stocks, which were held on their books to the CNO by email, FAX, or via posts, as soon as possible.

The Section states that no person shall finance any activity which is prohibited under the Weapons of Mass Destruction and their Delivery System Act, or under the United Nations Act of 1947 or any other Act that is relatable.

To prevent any person from financing activities prohibited under this Act, the United Nations (Security Council) Act, 1947, or any other relevant Act in force, or under an order issued pursuant to such Acts, related to weapons of mass destruction and their delivery systems, the Central Government is empowered to:

1. Freeze, seize, or attach funds, financial assets, or economic resources that are:

• Owned or controlled, either wholly or jointly, directly or indirectly, by such person.

• Held by or on behalf of such person or at their direction.

• Derived or generated from the funds or assets owned or controlled, directly or indirectly, by such person.

b) prohibit individuals from making funds, financial holdings, economic resources, or corresponding services available for the benefit of persons in relation to weapons of mass destruction and their delivery systems that are prohibited under this Act, the United Nations (Security Council) Act, 1947, or any other pertinent Act in force, or by an order delivered under any such Act.