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Corporate Laws Central Ministry of Finance Prevention of Money-laundering Act, 2002

IFSCA - Modifications and clarifications under the IFSCA (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022

05-Jan-2026 | F. No. IFSCA-DAC/7/2024-AMLCFT

IFSCA has issued a circular regarding the Modifications and clarifications under the International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022. By virtue of this circular, 1. Clause 1.3.24A has been inserted, which specifies the definition of "KYC Registration Agency (KRA)", which means an entity that has been granted a certificate of registration under the International Financial Services Centres Authority (KYC Registration Agency) Regulations, 2025. 2. Clause 4.1(d) has been inserted after sub-clause (c) of clause 4.1, which specifies that the risk categorisation of customers and the specific reason for such categorisation are required to be kept confidential from customers. 3. Clause (9) has been inserted into the Guidance Note to clause 5.6. specifying the requirement of undertaking the enhanced due diligence by the regulated entity to ascertain the source of funds of the customer, where such customer is an Indian National, for maintaining transparency and mitigating the risk of circular movement of money. 4. A new proviso has been inserted to Clause 5.11, providing the periodicity for conducting customer due diligence in case of a resident Indian customer having an existing client relationship with the Financial Group in India in the following manner: (a) once every two years - for high-risk customers, (b) once every eight years, for medium-risk customers and (c) once in every ten years - for low-risk customers 5. Clause 2A has been inserted in the Guidance Note of Clause 10.3 specifying that the Regulated Entities shall not restrict any transaction in any account merely on the basis that Suspicious Transaction Reports have been filed against such account. Please refer to the attached documents for more information.

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