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CIRCULAR
F. No. IFSCA-FCS/1/2023-Banking November 18, 2024
To,
The Regulated Entities in the International Financial Services Centre (‘IFSC’)
Subject: Exempting certain entities/activities from the applicability of International
Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist
Financing and Know Your Customer) Guidelines, 2022
Sir/Madam,
Reference is drawn to the International Financial Services Centres Authority (Anti Money
Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022
(hereinafter referred as ‘Guidelines’) issued by the International Financial Services Centres
Authority (hereinafter referred as ‘IFSCA’) vide notification No. IFSCA/2022-23/GN/GL001
dated October 28, 2022, and the Circulars issued thereunder.
2.
IFSCA has received representations from market participants to examine the
applicability of the Guidelines to certain entities/activities in International Financial Services
Centre (‘IFSC’). Based on the examination of the same and taking into consideration other
relevant factors, the IFSCA hereby exempts following entities/activities from the applicability
of the Guidelines: -
i.
‘Global-in-House Centre’ registered under IFSCA (Global In-House Centres)
Regulations, 2020;
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ii.
‘International Branch Campus’ (“IBC”) or an ‘Offshore Educational Centre’
(“OEC”) of a Foreign University or a Foreign Educational Institution registered
under IFSCA (Setting up and Operation of International Branch Campuses and
Offshore Education Centres) Regulations, 2022;
iii.
‘Financial Crime Compliance Services Provider’ registered under IFSCA (Book-
keeping, Accounting, Taxation and Financial Crime Compliance Services)
Regulations, 2024; and
iv.
A Financial Institution providing services only to the entities in its ‘Financial
Group’ which are located in a country not identified in the public statement of
FATF as ‘High-risk jurisdictions subject to call for action’. Any financial
institution undertaking transactions through third-party business / service
providers in the course of their operations, shall undertake business risk assessment
and comply with incidental provisions of the Guidelines.
3.
All Financial Institutions, including those exempted under clause 2 above, shall transact
or receive the monetary consideration (i.e. funds/fees/amount) only through an account
maintained with a Banking Unit in IFSC.
4.
The financial institutions exempted in Clause 2 above, however, shall undertake
Business Risk Assessment and document the same. In the event any AML/CTF risk are
envisaged in the business risk assessment, such entities shall continue to comply with the
provisions of the Prevention of Money Laundering Act 2002 and Rules made thereunder, and
IFSCA (AML/CTF/KYC) Guidelines, 2022.
5.
All other provisions of the Guidelines and Circulars issued thereunder, shall remain
unchanged.
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6.
The Circular is issued in exercise of the of powers conferred by Section 12 r/w 13 of
the International Financial Services Centres Authority Act, 2019 and Rule 9(14) of the
Prevention of Money- Laundering (Maintenance of Records) Rules, 2005.
7.
A
Copy
of
this
Circular
is
available
on
the
IFSCA
website
at
https://ifsca.gov.in/Legal/Index/TCce8MyOmco=
Ramachander S.S.R. Eranki,
General Manager
Head, AML & CFT Division
ramachander.essr@ifsca.gov.in
