On November 2, 2023, the International Financial Services Centres Authority (IFSCA) issued a circular, bearing reference F.No.110/IFSCA/Banking Regulation/2023-24/3, addressing all banking units. The circular discusses an important amendment to the IFSCA Banking Handbook pertaining to the conditions for opening a Global Administrative Office (GAO) and Representative Office (RO).
1. Amendment Details: The circular directs attention to specific sections in the IFSCA Banking Handbook Conduct of Business (COB) directions v 5.0, Module 12 (REPO) and Module 17 (GAO). More precisely, it focuses on para 3.iii of Module 12 and para 4.vii of Module 17. These sections outline the conditions that banking companies must meet for the establishment of a GAO and RO.
2. Key Amendment: The heart of this circular lies in the replacement of the existing conditions specified in the mentioned para(s). The new condition that takes immediate effect is as follows: “The Banking company’s track record in complying with Anti-Money laundering/Combating the financing of terrorism (AML/CFT) guidelines in its home jurisdiction.”
3. Incorporation in the Handbook: It’s important to note that these amended conditions will be formally incorporated into the IFSCA Banking Handbook during the next amendment or update of the Handbook. This indicates a shift in the regulatory framework concerning GAO and RO establishment, prioritizing compliance with AML/CFT guidelines.
International Financial Services Centres Authority
Circular No. F.No.110/IFSCA/Banking Regulation/2023-24/3 Dated: November 2, 2023
All Banking Units
Subject : Amendment to IFSCA Banking Handbook – Conditions for opening a Global Administrative Office (GAO) and Representative Office (RO)
1. Please refer para 3.iii of Module 12 (REPO) and para 4.vii of Module 17 (GAO) of the IFSCA Banking Handbook Conduct of Business (COB) directions v 5.0 (Banking Handbook).
2. The contents of the abovementioned para(s) shall be replaced by the following with immediate effect :
“The Banking company’s track record in complying with Anti-Money laundering/Combating the financing of terrorism (AML/CFT) guidelines in its home jurisdiction.”
3. These conditions shall be incorporated in the IFSCA Banking Handbook during the next amendment/updation of the Handbook.
Chief General Manager
Department of Banking Regulation and Development