On 3 August 2026, the International Financial Services Centres Authority (IFSCA) issued a circular introducing important amendments to the IFSCA (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022. These changes are applicable to all regulated entities operating in IFSCs, including Fund Management Entities (FMEs), banking units, intermediaries, and other regulated financial institutions.
The amendments primarily strengthen FIU reporting requirements and clarify the conditions for digital onboarding of Non-Resident Indian (NRI) customers.
Key Changes
1. Rule 8 Added Alongside Rule 7
The Guidelines have been amended to reference Rule 8 in addition to Rule 7 under the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, expanding the regulatory framework applicable to reporting entities.
2. FIU Reporting Must Be Done Through FINgate 2.0
IFSCA has clarified that:
User manuals and reporting formats are available on the FIU-India website.
All AML reports must now be filed online through the FINgate 2.0 portal.
This reinforces the move towards standardized electronic regulatory reporting.
3. Cross Border Wire Transfer Reports (CBWTR) Added
One of the most significant changes is the inclusion of Cross Border Wire Transfer Reports (CBWTRs) alongside existing reporting obligations.
The amendments insert CBWTR requirements into the guidance relating to regulatory reporting, meaning regulated entities should review whether their AML systems are capable of generating and submitting these reports where applicable.
4. Updated Countries Allowed for NRI Digital Onboarding
IFSCA has updated the jurisdictions from which NRI customers may complete Video KYC (V-CIP), subject to other regulatory conditions.
The approved jurisdictions are:
United States
Japan
South Korea
United Kingdom (excluding British Overseas Territories)
Canada
UAE
Singapore
Australia
European Union
Additionally, these jurisdictions must not be identified by FATF as High-Risk Jurisdictions or Jurisdictions under Increased Monitoring, nor designated by the Government of India as high-risk for money laundering, terrorist financing, or proliferation financing.
The same list has also been incorporated into the V-CIP onboarding conditions for low-risk NRI customers.
Impact on IFSC Fund Managers
Fund Management Entities and other IFSC regulated entities should consider the following actions:
Review AML reporting workflows to ensure compatibility with FINgate 2.0.
Evaluate whether CBWTR reporting needs to be incorporated into internal compliance processes.
Update digital onboarding policies for NRI investors.
Verify that V-CIP controls reflect the revised list of permitted jurisdictions.
Ensure AML and KYC technology platforms are updated to comply with the amended Guidelines.