On the 20th of October 2023, the International Financial Services Authority (IFSCA) issued a crucial circular marked F. No. 1110/IFSCA/Div. of AML & CFT/WMD Act/2023-24/01, addressed to all regulated entities in GIFT-IFSC. This circular outlines the procedure for implementing Section 12A of “The Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005.”
Detailed Analysis:
The circular references an order issued by the Ministry of Finance, Department of Revenue, dated 01 September 2023, which is hereinafter referred to as the ‘Order.’ This Order provides guidelines for the implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems Act, 2005.
The primary recipients of this Order are the International Financial Services Authority (IFSCA) and all regulated entities operating in the International Financial Services Centre, GIFT City (IFSC). To facilitate the implementation of Section 12A, the circular designates the UAPA Nodal Officer & Head of the Division of AML & CFT as the responsible Nodal Officer.
All regulated entities within IFSCA are required to adhere to the provisions outlined in the Order dated 01 September 2023. The full text of this Order is available for reference at the following URL: Procedure for Section 12A of WMD Act.
This implementation procedure is vital for ensuring compliance with the law and promoting the safety and integrity of financial activities within IFSCA and GIFT City. Regulated entities are encouraged to carefully review the Order and take the necessary steps to comply with Section 12A of the Act.
Conclusion:
In response to the circular issued by the International Financial Services Authority, regulated entities within GIFT-IFSC must take immediate action to familiarize themselves with the procedure for implementing Section 12A of the Weapons of Mass Destruction Act. This is a crucial step in maintaining compliance with the law and upholding the highest standards of financial security and integrity within the IFSCA and GIFT City. The Nodal Officer designated for this purpose will play a pivotal role in guiding and overseeing the implementation process. It is imperative that regulated entities access and review the full text of the Order for a comprehensive understanding of their obligations. Compliance with Section 12A is not only a legal requirement but also a fundamental component of ensuring the safety and stability of financial operations in this significant financial services hub. For further information and details, please refer to the provided URL.
International Financial Services Authority
CIRCULAR
F. No. 1110/IFSCA/Div. of AML & CFT/WMD Act/2023-24/01
20th October 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”.
Sir/Madam,
The Ministry of Finance, Department of Revenue vide F. No. P-12011/14/2022-ES Cell-DOR issued an Order dated 01 September 2023 (herein referred as ‘Order’), on procedure for implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (‘Act’). The said Order is applicable to the Regulator, International Financial Services Authority (‘IFSCA’) and all regulated entities in International Financial Services Centre, GIFT City (’IFSC’).
In view of applicability of order dated 01 September 2023, the undersigned, UAPA Nodal Officer & Head – Division of AML & CFT has been designated as Nodal Officer for implementation of Section 12A of the Act.
Accordingly, all Regulated Entities of IFSCA shall adhere to the Order dated 01 September 2023, which is available at
https://fiuindia.gov.in/pdfs/AML_legislation/DoR_Section_12A_WMD.pdf.
Ramachander S.S.R. Eranki,
UAPA Nodal Officer
& Head, AML & CFT Division
ramachander.essr@ifsca.gov.in
