Introduction : The International Financial Services Centres Authority (IFSCA) plays a crucial role in regulating financial activities within designated International Financial Services Centres (IFSCs). In line with its objectives of combating money laundering, terrorist financing, and ensuring proper customer identification, the IFSCA has issued guidelines for regulated entities. This circular outlines the requirements for registration on the FIU-IND FINNET 2.0 portal, emphasizing compliance with anti-money laundering (AML), counter-terrorist financing (CTF), and Know Your Customer (KYC) norms.
Detailed Analysis
1. Applicability and Responsibilities: The circular refers to specific clauses of the IFSCA Guidelines, emphasizing the responsibilities of regulated entities regarding AML, CTF, and KYC measures.
2. Legal Framework: It highlights the legal framework, including the Prevention of Money Laundering Act, 2002 (PMLA), and the Prevention of Money laundering (Maintenance of Records) Rules, 2005 (PML Rules), which provide the basis for the IFSCA guidelines.
3. Mandatory Registration: Regulated entities must promptly register on the FIU-IND FINNET 2.0 portal to ensure compliance with IFSCA regulations and avoid contravention of applicable laws.
4. Registration for Multiple Licenses: Entities holding multiple licenses or registrations from IFSCA for various lines of business must register all such lines on the FINNET 2.0 portal.
5. Updating Registration Information: Existing registrants with multiple licenses must update their information on the FINNET 2.0 portal to reflect all authorized lines of business.
Conclusion : The circular underscores the IFSCA’s commitment to maintaining robust AML, CTF, and KYC frameworks within IFSCs. By mandating registration on the FIU-IND FINNET 2.0 portal, regulated entities are expected to enhance transparency and compliance with regulatory requirements. Failure to adhere to these guidelines may result in regulatory action. Therefore, it is imperative for all designated entities to promptly fulfill their registration obligations and ensure ongoing compliance with IFSCA directives.
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International Financial Services Centres Authority
Circular No F. No. 886/IFS CA/FATF-C/Coordination/2023-24 Dated: 14th March 2024
To,
The Designated Directors/
Principal Officers
All Regulated Entities
GIFT-IFSC
Sub: Registration on FIU-IND FINNET 2.0 portal for compliance with International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022.
Sir/Madam,
A. Reference may be drawn to clause 1.2, 1.3.33 and 1.3.35 of Chapter-I (Applicability, Definitions and Responsibilities), clause 10.3 of Chapter -X (Process of Identification and reporting of suspicious transactions) and other provisions of the International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022 (hereinafter referred as ‘Guidelines’) issued vide notification No. IFSCA/2022-23/GN/GL001 dated October 28, 2022, by the International Financial Services Centres Authority (hereinafter referred as ‘Authority’).
B. Reference may also be drawn to Prevention of Money-laundering Act, 2002 (‘PMLA’) and the Prevention of Money laundering (Maintenance of Records) Rules, 2005 (‘PML, Rules’).
C. For compliance with relevant provisions of the Guidelines and also with the provisions of the PMLA and PML Rules, all regulated entities are required to immediately complete their registration on FIU-IND FINNET 2.0 portal. The non-registration with FIU-IND by any regulated entity shall be construed as contravention of the provisions of the respective IFSCA regulations or circulars or guidelines or directions or instructions issued thereunder.
D. The Regulated Entities which have been granted more than one license / registration / recognition / authorisation by the International Financial Services Centres Authority (‘IFSCA’) for different line of business (‘LoBs’), shall have to mandatorily register all LoBs in FINNET 2.0 portal. The license/ registration/recognition/ authorization number (issued by IFS CA) of the primary revenue-generating business of the RE may be used as the RE Registration Number at the time of registering on the FINNET 2.0 portal.
E. The Regulated Entities which have completed registration on FINNET 2.0 portal and have been granted more than one license / registration / recognition / authorisation by the IFSCA for different LoBs, shall also update the same on FINNET 2.0 portal.
F. Copy of the circular is available on the IFSCA website at https://ifsca.gov.in/Legal/Index/TCce8MyOmco=
Ramachander S.S.R. Eranki,
Head, AML & CFT Division,
[email protected]
