finance
The International Financial Services Centres Authority (IFSCA) has released a new circular updating its 2022 Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT), and Know Your Customer (KYC) guidelines. The updates consist of two significant amendments aimed at enhancing compliance and risk management protocols.
New Countermeasures Requirement:
A new sub-clause under Clause 11.1 has been introduced. It requires regulated entities to implement countermeasures mandated by any international or intergovernmental organizations recognized by the Indian government.
Revised Compliance and Audit Functions:
Clause 12.2 has been revised to compel regulated entities to provide comprehensive group-wide compliance, audit, and AML/CFT functions. This includes detailed reporting of customer, account, and transaction data, particularly for instances where unusual activities have been identified and analyzed.
These modifications are designed to enhance the alignment of IFSCA regulations with global AML/CFT standards. They also aim to fortify risk management practices across branches and subsidiaries, ensuring more robust oversight.