The International Financial Services Centres Authority (IFSCA) has issued Frequently Asked Questions (FAQs) to provide clarity on the implementation of the IFSCA (Anti Money Laundering, Counter Terrorist Financing and Know Your Customer) Guidelines, 2022.
The FAQs clarify various compliance requirements applicable to regulated entities in IFSCs and are intended to aid interpretation of the Guidelines. They do not constitute legal advice, and in case of any inconsistency, the provisions of the applicable Acts, Rules, Regulations and the Guidelines shall prevail.
The FAQs, inter alia, clarify the following, such as:
• Applicability of the AML/CFT/KYC Guidelines to regulated entities and financial groups.
• Appointment and roles of the Designated Director and Principal Officer.
• Formulation and approval of AML/CFT/KYC policies.
• FIU-IND FINGate 2.0 registration requirements and reporting obligations.
• Customer Due Diligence (CDD) and acceptable verification methods.
• Video-based Customer Identification Process (V-CIP), including onboarding of NRIs.
• AML/CFT obligations for Fund Management Entities (FMEs) and Alternative Investment Funds (AIFs).
• Reporting of Suspicious Transaction Reports (STRs) to FIU-IND.
• Procedures relating to countering terrorist financing, sanctions screening, freezing and unfreezing of assets.
• Beneficial Ownership (BO) thresholds and control tests.
Please refer to the document attached below for more details.
