The International Financial Services Centres Authority (“IFSCA”) has issued a circular dated
February 26, 2026, bearing F. No. IFSCA-DAC/7/2024-AMLCFT, notifying modifications to the
International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist
Financing and Know Your Customer) Guidelines, 2022 (“Guidelines”), as updated up to
February 26, 2026.
The Circular is issued in exercise of powers under Section 12 read with Section 13 of the
IFSCA Act, 2019, and Rule 9(14) of the Prevention of Money Laundering (Maintenance of
Records) Rules, 2005.
The key highlights of the Circular are as follows:
- The Circular notifies amendments to the IFSCA (Anti Money Laundering, Counter-Terrorist
Financing and Know Your Customer) Guidelines, 2022. - The amendment relates to Annexure II, Part A, Clause 1.2.2(viii)(d) dealing with
the Video-based Customer Identification Process (V-CIP). - Under the existing framework, while conducting V-CIP, the authorised official of the
Regulated Entity is required to record audio-video, capture the customer’s photograph,
and obtain identification information through any one of the following:- Offline verification of Aadhaar.
- KYC records downloaded from CKYCR or a KYC Registration Agency (KRA) set up in IFSC.
- Equivalent electronic Officially Valid Documents (OVDs), including documents issued through DigiLocker.
- Biometric-based e-KYC authentication, including Aadhaar Face Authentication.
- The Circular inserts a new sub-clause (e) under Clause 1.2.2(viii), permitting
OTP-based Aadhaar e-KYC authentication as an additional mode of customer identification. - Consequently, Regulated Entities may now obtain customer identification information during
V-CIP using OTP-based Aadhaar e-KYC authentication in addition to the previously available
identification methods.
A copy of the Circular along with the modified Guidelines is attached herewith for your ready reference.
Source category: IFSC Insurance Office
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