IFSCA Strengthens AML/KYC Framework with FINgate 2.0 Reporting

OVERVIEW

• The International Financial Services Centres Authority (IFSCA) has introduced further amendments to the IFSCA (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022, with the Guidelines updated as on 3 August 2026.
• The amendment introduced several key regulatory updates to strengthen the AML/CFT reporting framework. These include the addition of a reference to Rule 8 in Clause 10.3, mandatory online submission of reports through the FINgate 2.0 portal, and the inclusion of Cross Border Wire Transfer Reports (CBWTRs) within the prescribed reporting requirements.
• It also revised the V-CIP onboarding framework for low-risk Non-Resident Indian (NRI) customers. The changes include updated requirements relating to IP addresses during the V-CIP process and prescribe a specific list of permitted jurisdictions, subject to the applicable FATF standards and Central Government risk classifications.
• This amendment Strengthens GIFT City’s credibility as a secure, transparent and globally aligned financial hub.

CROSS-BORDER WIRE TRANSFERS COME INTO FOCUS

• The amended Guidelines expressly recognise Cross Border Wire Transfer Reports (CBWTRs) alongside other important FIU-IND reporting requirements.
• Cross Border Wire Transfer Reports have been inserted alongside Non-Profit Organization Transaction Reports in the monthly filing timeline, to be submitted to FIU-IND by the 15th of the succeeding month.
• Suspicious Transaction Reports (STRs) must be submitted promptly once a transaction or series of transactions is concluded to be suspicious.
• The Principal Officer is responsible for timely submission of CBWTRs, STRs and NTRs.
• Strict confidentiality must be maintained while filing these reports.
• Additionally, The reporting provision under Clause 10.3 now expressly refers to Rule 8, in addition to Rule 7, of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.

FINGATE 2.0 THE DIGITAL REPORTING FRAMEWORK

• The amendments also clarify that all prescribed reports are to be filed online only through FINgate 2.0.
• Point (1) of the Guidance Note to Clause 10.3 has been substituted to provide for online reporting through FINgate 2.0
• User manuals and reporting format guides are available through the FINnet 2.0 resources for RE on the FIU-India website.
• The move towards a unified digital reporting framework can support greater standardisation, efficiency and consistency in AML/CFT reporting across GIFT IFSC Regulated Entities.

V-CIP AND NRI ONBOARDING

• The circular substitutes the Explanation to clause 1.2.1(vii) of Part A of Annexure II, dealing with the IP address from which a V-CIP connection may originate.
• For resident Indian customers the IP address is to emanate from India. For a Non-Resident Indian it may emanate from India or from the country of residence, where that country is the United States of America, Japan, South Korea, the United Kingdom excluding British Overseas Territories, Canada, the UAE, Singapore, Australia or the European Union.
• Those jurisdictions must not be identified by FATF as High-Risk Jurisdictions subject to a Call for Action or as Jurisdictions under Increased Monitoring, or notified by the Central Government as high risk for money laundering, terrorist financing or proliferation financing.
• The same list has been substituted in Explanation I to the additional conditions for onboarding low-risk NRI customers through V-CIP.

CONCLUSION

• By strengthening reporting standards while supporting digital customer onboarding, IFSCA continues to develop a regulatory ecosystem that balances ease of doing international financial business with strong AML/CFT safeguards.
• All Regulated Entities operating in GIFT IFSC should assess whether changes are required to their AML/CFT policies, FIU-IND reporting procedures, CBWTR processes, transaction monitoring systems, V-CIP workflows, NRI onboarding controls and Principal Officer reporting procedures.