Modifications to AML, CFT and KYC Guidelines for IFSC Regulated Entities

[Image omitted. See the official document.]

CIRCULAR

F. No. 822/IFSCA/FATF-C/Legal/2022-23 /03

23rd October 2023

To,

All the Regulated Entities in the International Financial Services Centre (IFSC)

Subject: Modifications under the International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022.

Sir/Madam,

A. 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 vide notification IFSCA/2022-23/GN/GL001 dated October 28, 2022, by the International Financial Services Centres Authority (hereinafter referred as ‘Authority’).

B. Further vide Gazette notification dated G.S.R. 745(E). dated 17th October 2023, Government of India has amended the Prevention of Money-laundering (Maintenance of Records) Rules, 2002 (hereinafter referred as ‘Rule’). Accordingly, the Authority hereby specifies the following modifications, in the aforesaid Guidelines:

1. In sub-clause (c) of clause 2.1 of the Guidelines, after the words ‘enterprise-wide level’ and before the words ‘wherever applicable’ the words ‘(Financial Group-wide level or Group-wide level)’ may be inserted.

2. In clause 5.4.8 of the Guidelines, for the words ‘proviso of rule 9(1)(b)’, the words ‘second proviso of rule 9(1)(c)’ shall be substituted;

3. In sub-clause (a) of clause 6.2 of the Guidelines, for the words “within 2 days” the words ‘immediately’ shall be substituted;

4. In point (i) of the proviso to sub-clause (c) of clause 6.2 of the Guidelines, for the words ‘group-wide policy’, the words ‘Group-wide programmes’ shall be substituted.

5. In point 5 (a) (i) of the Guidance note to clause 10.3 of the Guidelines, for the words ‘within 7 days of arriving at a’, the words ‘promptly on’ shall be substituted;

6. After sub-point (d) of the clause 8(iii) of Part-II of the Annexure-I of the Guidelines, the following shall be inserted: -

   • (e) the names of the beneficiaries, trustees, settlor, protector, if any and authors of the trust and the address of the registered office of the trust; and
   • (f) list of trustees and documents as are required for individuals under sub-rule (4) of rule 9 of the Rules and Guidelines for those discharging role as trustee and authorised to transact on behalf of the trust'.

7. In clause 12.1 of the Chapter-XII of the Guidelines,

   • (i) In sub-clause (a), for the words ‘group policy’, the words ‘Financial Group’s programmes (Group-wide programmes)’ shall be substituted;
   • (ii) In the third line of sub-clause (a), for the words ‘The group policies’, the words ‘These Group-wide programmes’ shall be substituted;
   • (iii) In sub-clause (b), for the words ‘group policy’, the words ‘Group-wide programmes’ shall be substituted;
   • (iv) In sub-clause (e), for the words ‘group policy’, the words ‘Group-wide programmes’ shall be substituted;
   • (v) After sub-clause (e), the following new sub-clause shall be inserted: - ‘(f) Financial Groups are required to implement Group-wide programmes for the purpose of discharging obligations under the provisions of Chapter-IV of the Act, Rules and Guidelines.’

8. In clause 12.2 of the Chapter-XII of the Guidelines,

   • (i) In the title of clause 12.2, for the words ‘Group Policy’ the words ‘Group Wide Programmes’ shall be substituted;
   • (ii) The sub-clause (a) shall be substituted as follows: - ‘(a) has developed and implemented Group-wide programmes against ML/TF, including group- wide policies and procedures for sharing of information required for the purpose of CDD and ML/TF risk management;’
   • (iii) In sub-clause (b) after words ‘exchanged’ and before the words ‘between’, the words ‘, including safeguards to prevent tipping-off’ shall be inserted;

C. All other provisions specified in the Guidelines and circulars issued thereunder shall remain unchanged.

D. Copy of the circular is available on the IFSCA website at https://ifsca.gov.in/Legal/Index/TCce8MyOmco= .

Ramachander S.S.R. Eranki,
Head, AML & CFT Division,
ramachander.essr@ifsca.gov.in