[Image omitted. See the official document.]

International Financial Services Centres Authority

(Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer)

Guidelines, 2022

(Updated as on August 03, 2026)

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TABLE OF CONTENTS

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INDEX OF ABBREVIATIONS

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CHAPTER- I

APPLICABILITY, DEFINITIONS AND DUTIES OF A REGULATED ENTITY

1.1 Short title and commencement

These Guidelines may be called as International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022, and shall come into force from the date of its publication in the official gazette¹.

1.2 Applicability

1.2.1 ²[Save as otherwise provided under clause 1.2.3., the provisions of these Guidelines shall apply to every Regulated Entity which is licensed, recognized, registered or authorized by the Authority. Provided that the Authority may exempt any activity or a Regulated Entity from the applicability of these Guidelines.]

1.2.2 The provisions of these Guidelines shall also apply to a Financial Group of the Regulated Entity, to such extent as specified in Chapter-XII.

1.2.3 ³[The following entities or activities shall be exempted from the applicability of these Guidelines: (i) Global-in-House Centre’ registered under IFSCA (Global In-House Centres) Regulations, 2020; (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’.

Provided that, 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.

1.2.4 The entities exempted in clause 1.2.3. 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 these Guidelines.]

1.3 Definitions

In these Guidelines, unless the context otherwise requires,-

1.3.1 “Act” and “Rules” means the Prevention of Money-laundering Act, 2002 and the Prevention of Money laundering (Maintenance of Records) Rules, 2005, respectively.

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¹ Vide Gazette Notification No. IFSCA/2022-23/GN/GL001 dated 28th October 2022, published in the Gazette of India, Extraordinary, Part III, Sec.4, vide No. 533 on 31st October 2022. ² Substituted for “The provisions of these Guidelines shall apply to every Regulated Entity which is licensed, recognized or registered by International Financial Services Centres Authority (IFSCA) and also to the Regulated Entities authorized by it, to the extent specified.” vide Circular dated January 02, 2026. ³ Clarified vide Circular dated November 18, 2024 (the circular can be accessed at: https://shorturl.at/XCzX2).

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1.3.2 “Authority” or “IFSCA” means the International Financial Services Centres Authority established under sub-section (1) of section 4 of International Financial Services Centres Authority Act, 2019 (50 of 2019).

1.3.3 “Beneficial Owner” means: -

(a) Where the customer is a company, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical persons, has a controlling ownership interest or who exercises control through other means.

Explanation- For the purpose of this sub-clause- (i) “Controlling ownership interest” means ownership of or entitlement to more than ⁴[ten] per cent. of the shares or capital or profits of the company; (ii) “Control” shall include the right to appoint majority of the directors or to control the management or policy decisions including by virtue of their shareholding or management rights or shareholders agreements or voting agreements;

(b) Where the customer is a partnership firm, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has/have ownership of/entitlement to more than ⁵[ten] per cent. of capital or profits of the partnership ⁶[or who exercises control through other means. Explanation- For the purpose of this clause, “Control” shall include the right to control the management or policy decision;]

(c) Where the customer is an unincorporated association or body of individuals, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has/have ownership of or entitlement to more than fifteen per cent. of the property or capital or profits of the unincorporated association or body of individuals. Explanation- The term ‘body of individuals’ includes societies. Where no natural person is identified under (a) to (c) above, the beneficial owner is the relevant natural person who holds the position of senior managing official.

(d) Where the customer is a trust, the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with ⁷[ten] per cent. or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership. Explanation: - For the purpose of determination of beneficial owner, any amendment made under sub-rule 3 of rule 9 of Rules, shall be applicable in addition to the requirements under these Guidelines.