Consultation Paper for issuing Circular on Integration of Regulated Entities with KYC Registration Agencies in IFSC

Consultation Paper for issuing Circular on Integration of Regulated Entities with KYC Registration Agencies in IFSC A. Objective of the Consultation paper The objective of this consultation paper is to seek comments from the public and the stakeholders on integration of Regulated Entities in IFSC with KYC Registration Agencies (KRAs) registered with the International Financial Services Centres Authority (IFSCA).

B. Draft Circular and Proposal for Public Comments

1. The draft circular on “Integration of Regulated Entities with KYC Registration Agencies in IFSC” is placed as Annexure- 1, inviting comments and suggestions from the public and stakeholders.

2. Comments on the draft circular may be sent by email to Mr. Rishikesh Wandhekar, AM, IFSCA at rishikesh.wandhekar@ifsca.gov.in with a copy to Mr. Pawan Kumar Chowdhary, DGM, IFSCA at pawan.kc@ifsca.gov.in and Mr. Arjun Prasad, CGM, IFSCA at arjun.pd@ifsca.gov.in latest by July 16, 2026.

1. The comments may be provided in the following format (MS Word or MS Excel only):

Name and Details of the Person / Entity [Organization name (if applicable), Contact No., Email address] Paragraph No. Comments/Suggestions Detailed rationale along Sr. No of the Draft along with revised Clause in with supporting

Circular line with the suggestion information Issued on June 26, 2026 1 | PageAnnexure - 1 DRAFT CIRCULAR e.F.No. XXXX June XX, 2026 To, All Regulated Entities operating in the International Financial Services Centre

(IFSC), including KYC Registration Agencies and Market Infrastructure Institutions

(MIIs).

Sub: Integration of Regulated Entities with a KYC Registration Agency in the IFSC

1. In order to promote ease of doing business and to remove duplication of KYC process for availing financial services in the IFSC, the IFSCA (KYC Registration Agency) Regulations, 2025 (‘KRA Regulations’) were notified providing the regulatory framework for registration, regulation and supervision of KYC registration agencies (“KRA”) in the IFSC.

2. Reference is drawn to regulation 25 of the KRA Regulations wherein it is mandated for every regulated entity to upload the KYC information on the system of KRA within 3 working days from the date of completion of KYC process. In order to operationalize KRAs and to streamline the process of uploading the KYC information, it has been decided that all regulated entities in IFSC shall integrate with at least one KRA registered with IFSCA for the purpose of uploading, storing,

retrieving and updating KYC records of their clients:

This mandate however, shall not apply to activities or entities exempted under clause 1.2.3 of the IFSCA (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022.

3. Instructions for Regulated Entities and KRAs

3.1. The regulated entities shall, within two months from the date of the circular, integrate with at least one KRA registered with IFSCA.

3.2. The regulated entities shall ensure that all new clients onboarded on or after September 01, 2026, are integrated with a KRA and the KYC details of the clients are uploaded on the KRA system in accordance with the KRA Regulations. In case the client’s KYC data already exists in the system, the 2 | Pageregulated entity shall download and verify the existing KYC information and upload modifications, if any, so as to ensure that the latest information about the client is available in the KRA system in terms of regulation 25(1) of the KRA Regulations.

3.3. The regulated entities shall ensure that KYC details of all active clients who were onboarded prior to September 01, 2026 are uploaded to the KRA system on or before October 30, 2026.

3.4. The KRAs shall ensure that a unique identification number is assigned to each client in their database, which shall be used by the clients for onboarding and availing services with other regulated entities in the IFSC.

3.5. The KRAs and regulated entities shall be responsible for ensuring compliance with the KRA Regulations, this circular, and for putting in place adequate systems, controls and oversight mechanisms.

4. The MIIs in the IFSC shall bring the mandate of this circular to the notice of their members / participants, and shall also monitor the compliance thereof by them.

5. This circular is issued in exercise of powers conferred by section 12 of the IFSCA, 2019, read with regulation 25 and 35 of IFSCA (KYC Registration Agency) Regulations, 2025, and shall come into force with immediate effect.

A copy of this circular is available on the website of IFSCA at www.ifsca.gov.in.

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