The International Financial Services Centres Authority (IFSCA) on June 19, 2026, issued the Amendment to the Circular titled 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.
The following has been stated:
• It has amended its November 18, 2024, circular on exemptions from the IFSCA (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022. Under the revised provision, all Financial Institutions, including those exempted from the AML/KYC Guidelines, shall ensure that all monetary consideration arising from business transactions—such as funds, fees, or other payments—is routed only through an account maintained with an IFSC Banking Unit (IBU) or a Special Non-Resident Rupee (SNRR) Account.
• The amendment strengthens oversight of financial transactions by prescribing a mandatory channel for fund flows while retaining the existing AML/KYC exemptions granted under the earlier circular. All other provisions of the Exemption Circular remain unchanged.
• The revised requirement has been issued under the powers conferred by the IFSCA Act, 2019, and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, and has come into force with immediate effect.
[Notification no. - IFSCA-BDev0FSSC/2/2023]
