Introduction: The International Financial Services Centres Authority (IFSCA) has issued a crucial circular, F. No. 1110/IFSCA/Div. of AML & CFT/WMD Act/2023-24/01, dated 22nd November 2023. This communication addresses all Regulated Entities in the Gujarat International Finance Tec-City (GIFT-IFSC), outlining the procedure for the implementation of Section 12A of “The Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005,” and Section 51A of the Unlawful Activities (Prevention) Act, 1967.

Detailed Analysis: A. The circular refers to previous communications on the Procedure for implementation of Section 51A of the Unlawful Activities (Prevention) Act, 1967. Additionally, it draws attention to Circular F. No. 1110/IFSCA/Div. of AML & CFT/WMD Act/2023-24/01 from 20th October 2023, which addresses the procedure for implementing Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005.

1. The Department of Revenue, Ministry of Finance, through an Office Memorandum dated 20th October 2023, provides guidelines on the implementation of Section 12A of the WMD Act. The memorandum emphasizes that sanctions against any person or entity must be imposed ‘without delay,’ i.e., on the same business day but not later than 24 hours in any case. The complete Office Memorandum is accessible at link.

2. Regulated Entities in GIFT-IFSC are strongly advised to adhere to the guidelines outlined in the Office Memorandum dated 20th October 2023. The circular underscores the urgency of compliance with the specified procedures to ensure the effective implementation of anti-terrorism laws.

Conclusion: In conclusion, the IFSCA circular serves as a pivotal guide for all Regulated Entities in GIFT-IFSC, detailing the precise procedures for implementing Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005, and Section 51A of the Unlawful Activities (Prevention) Act, 1967. The emphasized need for immediate action, as outlined in the Office Memorandum from the Department of Revenue, highlights the gravity of compliance with anti-terrorism laws. It is imperative for entities to familiarize themselves with the circular’s content and promptly integrate the prescribed measures to uphold regulatory standards and contribute to national security.

*****

INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY

Circular F. No. 1110/IFSCA/Div. of AML & CFT/WMD Act/2023-24/01 Dated: 22nd November 2023

To,

All Regulated Entities in GIFT-IFSC

Sub: Procedure for implementation of Section 12A of “The Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005” and Section 51A of Unlawful Activities (Prevention) Act, 1967.

Sir/Madam,

A. Reference may be drawn to communication dated 21st April 2023 to all Regulated Entities in GIFT-IFSC regarding Procedure for implementation of Section 51A of the Unlawful Activities (Prevention) Act, 1967 and subsequent Circulars on the said subject and also to Circular issued vide F. No. 1110/IFSCA/Div. of AML & CFT/WMD Act/2023-24/01 dated 20th October 2023 on Procedure for implementation of Section 12A of “The Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005”.

B. In this regard, the Department of Revenue, Ministry of Finance, vide F. No. P­12011/14/2022-ES Cell-DOR has issued an Office Memorandum dated 20th October 2023 (herein referred as ‘OM’), on procedure for implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (‘Act’), wherein it has been clarified that the sanctions against any person or entity shall be imposed ‘without delay’ i.e. on the same business day but not later than 24 hours in any case. The O.M. is available at https://fiuindia.gov.in/pdfs/AML legislation/OM20102023.pdf

C. All Regulated Entities in GIFT-IFSC are advised to adhere to the aforesaid OM dated 20th October 2023.

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

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