IFSCA has issued a consultation paper on “Modifications to the IFSC (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022 (“Guidelines”) dated 08th July 2025, inviting public comments on the proposed modifications to Part-A of Annexure II [‘Video based Customer Identification Process (V-CIP) for Indian Nationals’]. The proposed amendments are intended to further strengthen Anti-Money Laundering, Counter-Terrorist Financing and Know Your Customer (AML-CFT-KYC) measures under the Guidelines notified on 28th October 2022.
Intent of the Draft Modification:
- The draft modification aims to streamline the process of onboarding Non-Resident Indian (NRI) customers for investment opportunities in the International Financial Services Centres (IFSCs).
- It ensures that necessary verification safeguards are in place while facilitating customer onboarding.
- Stakeholders are encouraged to provide feedback on the proposed framework, including suggestions for enhancements or recommendations for improvements.
- The modifications also invite stakeholders to highlight challenges related to the implementation of the Video based Customer Identification Process (V-CIP) for NRI customers.
The additional conditions prescribed in the draft modification are specified below:
| Clause No. | Provision Added | Description |
|---|---|---|
| Clause (i), Part-A, Annexure II | V-CIP for NRI Customers | Regulated Entities (REs) may onboard Non-Resident Indian (NRI) customers through V-CIP for:
|
| Explanation I & II | Definition and Scope | “NRI customer” refers to a low-risk NRI residing in any of the following jurisdictions:
|
| Clause (ii) | IP Address Restriction | The IP address used during the V-CIP process must originate from the same jurisdiction as the current address proof submitted by the NRI customer. |
| Clause (iii) | Bank Account Verification | Regulated Entities must capture the details of the NRI customer’s local bank account (from the same jurisdiction) for address verification purposes. |
| Clause (iv) | Debit Freeze Mode | After successful completion of V-CIP and identity verification, the NRI customer’s account may initially be opened in debit freeze mode. |
| Clause (v) | Activation of Account | The account will be activated only after receipt and verification of the first credit from the NRI customer’s bank account submitted during onboarding. |
Public comments are invited on the draft modifications to Part-A of Annexure II of the IFSCA (AML, CFT and KYC) Guidelines, 2022 as follows:
- Comments may be sent by email to the Division of AML & CFT at aml-cft-div@ifsca.gov.in with the subject line “Comments on draft modification to Part-A of Annexure II of the IFSCA (AML, CFT and KYC) Guidelines, 2022”.
- The last date for submission of comments is 01st August 2025.
- The consultation paper proposes enabling V-CIP onboarding for eligible NRIs residing in select jurisdictions under the AML, CFT and KYC Guidelines, 2022.
- Stakeholders are encouraged to review the proposed modifications and submit their suggestions to assist in finalizing the regulatory framework.
Source category: IFSC Insurance Office
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