On 26 February 2026, the International Financial Services Centres Authority (IFSCA) issued a key amendment to its AML, CFT & KYC Guidelines, 2022.
🔔 What’s New?
A new sub-point has been inserted under Clause 1.2.2 of Part-A, Annexure-II:
“OTP based Aadhaar e-KYC authentication”
This modification has been issued under:
Section 12 read with Section 13 of the IFSCA Act, 2019
Rule 9(14) of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005
The circular is effective immediately.
Why This Matters for IFSC AIFs & Fund Managers
For AIFs and fund structures operating out of GIFT IFSC, this brings:
✅ Faster digital onboarding of resident Indian investors
✅ Reduced paperwork and physical KYC dependency
✅ Seamless AML-compliant verification
✅ Stronger alignment with digital-first fund infrastructure
This move significantly enhances ease of doing business in IFSC while maintaining AML integrity.