The International Financial Services Centres Authority (IFSCA) on October 12, 2023, issued modifications under the IFSCA (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022 for specifying additional AML/CFT/KYC measures and clarifications.
The following modifications have been stated:
• In clause 1.3.38 of the Guidelines, after the words ‘effective supervision.’ The following explanation shall be inserted:
“Explanation: Physical presence means meaningful mind in the form of senior management located within an IFSC. The existence simply of a local agent or low-level staff does not constitute physical presence.”
• After point (ii) of clause 5.4.9 of the Guidelines, the following point shall be inserted, namely:
“(iii) in relation to life insurance policies, the Regulated Entity should be required to take reasonable measures to determine whether the beneficiaries and/or, where required, the beneficial owner of the beneficiary, are PEPs. This should occur, at the latest, at the time of the payout. Where higher risks are identified, financial institutions should be required to inform Senior Management before the payout of the policy proceeds, to conduct enhanced scrutiny on the whole business relationship with the policyholder, and to consider making a Suspicious Transaction Report.”
• After sub-clause (b) of clause 5.6 of the Guidelines, the following sub-clause shall be inserted, namely:
“(c) The Regulated Entities shall specifically apply enhanced due diligence measures, proportionate to the risks, to business relationships and transactions with natural and legal persons (including financial institutions) from countries for which this is called for by the FATF.”
• After clause 7.2 of the Guidelines, the following clause shall be inserted, namely:
“7.2A. The Regulated Entity shall verify the information pertaining to its customer where there is a suspicion of ML/TF.”
• In sub clause (b) of clause 7.7.6 of the Guidelines, after the words ‘at least six years’ the words “or for such period as prescribed under the applicable laws” shall be omitted.
[Circular No. 822/IFSCA/FATF-C/Legal/2022-23/02]
