The notification issued by the Ministry of Finance, Department of Economic Affairs, Financial Market Division, designates specific services as 'financial services' under the International Financial Services Centres Authority Act, 2019.
The designated financial services can only be offered by units within an International Financial Service Centre (IFSC) regulated by the International Financial Services Centres Authority to non-residents.
The notification includes conditions preventing the establishment of these financial services through the splitting, reconstruction, or reorganization of existing businesses in India.
The notification also restricts units from offering services by transferring or receiving existing contracts or work arrangements from their group entities in India.
Key Changes
The Central Government notifies the following as financial services: book-keeping services, accounting services, taxation services, and financial crime compliance services.
These services must be provided to non-residents, defined as persons resident outside India under the Foreign Exchange Management Act, 1999, and also including units in International Financial Service Centres.
Financial services can only be offered by units in an International Financial Service Centre regulated by the International Financial Services Centres Authority.
The provision of these services is restricted if the non-resident's business is set up by splitting up, reconstructing, or reorganizing a business already existing in India.
Units within IFSCs are prohibited from offering these services through the transfer or receipt of existing contracts or work arrangements from their group entities in India.
The definition of 'financial crime compliance services' includes services related to Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), Financial Action Task Force (FATF) recommendations, and other related activities.
Impact Analysis
Impact on International Financial Service Centres (IFSCs)
IFSC units need to develop expertise in AML/CFT compliance and FATF recommendations to effectively offer financial crime compliance services.
Impact on Non-Residents
Non-residents can benefit from specialized financial crime compliance services offered within IFSCs.
Impact on Indian Businesses
Indian group entities are restricted from transferring existing contracts or work arrangements to their IFSC counterparts for the provision of these services.
Suggested Action Items for Businesses
Indian businesses should be aware of the limitations and ensure they do not attempt to circumvent the restrictions.
Key Entities Referenced
Central Government: The issuer of the notification, acting through the Ministry of Finance.
International Financial Services Centres Authority (IFSCA): The regulatory body for International Financial Service Centres in India.
International Financial Service Centre (IFSC) units: Entities operating within an IFSC and regulated by the IFSCA.
Non-Residents: Persons resident outside India as defined under the Foreign Exchange Management Act, 1999, including units in International Financial Service Centres.
Foreign Exchange Management Act, 1999: Indian legislation governing foreign exchange transactions.
International Financial Services Centres Authority Act, 2019: The Act that establishes the International Financial Services Centres Authority.
Financial Action Task Force (FATF): An inter-governmental organization that develops policies to combat money laundering and terrorist financing.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-19012024-251465
CG-DxLx-xEG-I1D9H0x1x2x0 24-251465
xxxGIDExxx
असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
सं. 282] नई दिल्ली, बृहस्ट्प जतिार, िनिरी 18, 2024/पौष 28, 1945
No. 282] NEW DELHI, THURSDAY, JANUARY 18, 2024/PAUSHA 28, 1945
जित्त मत्रं ालय
(आर्थकि काय िजिभाग)
(जित्तीय बािार प्रभाग)
अजधसचू ना
नई दिल्ली, 18 िनिरी, 2024
का.आ. 291(अ).—केंद्रीय सरकार, अंतराष्ट्रीय जित्तीय सेिा केंद्र प्राजधकरण अजधजनयम, 2019 (2019 का 50)
की धारा 3 की उप-धारा (1) के खंड ( .ड) के उपखण् ड (xiv) द्वारा प्रित्त िजियों का प्रयोग करते हुए, जनम्नजलजखत को
जित्तीय सेिाओं के रूप म ेंअजधसूजचत करती ह,ै अथाित, : -
1. बही खाता सेिाए;ं
2. लेखा सेिाए;ं
3. कराधान सेिाएं; तथा
4. जित्तीय अपराध अनुपालन सेिाएं:
परन् त ु जित्तीय सेिाओं की प्रस्ट्थापना अंतराष्ट्रीय जित्तीय सेिा केंद्र प्राजधकरण द्वारा जिजनयजमत अतं राष्ट्रीय जित्तीय सेिा केंद्र
की इकाइयों द्वारा उन अजनिाजसयों को की िाएगी, जिनका व्यिसाय जनम्न जलजखत म ें दकसी प्रकार स े प्रारंभ नहीं दकया
गया ह ै–
453 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(i) भारत में पहल े से जिद्यमान व् यिसाय का जिभािन; या
(ii) भारत में पहल े से ही जिद्यमान व्यिसाय की पुनजनमािण; या
(iii) भारत में पहल े से जिद्यमान व्यिसाय का पुनगिठन:
परन् त ु यह भी दक ऐसी इकाइया ं जिद्यमान संजििाओं के अंतरण या प्राजि या भारत म ें अपने समूह की संरचनाओं के माध् यम
से सेिाए ं नहीं िेगी।
स्ट्पष्टीकरण - इस अजधसूचना के प्रयोिन के जलए -
(क) "जित्तीय अपराध अनुपालन सेिाओं" म ें धन िोधन रोधी (एएमएल)/आतंकिाि के जित्तपोषण को रोकन े (सीएफटी) के
उपायों और जित्तीय कारििाई कायि बल (एफएटीएफ) की जसफाररिों और अन्य संबंजधत गजतजिजधयों के अनुपालन के
संबंध म ें प्रित् त सेिाएं सजम्मजलत होंगी;
(ख) "अजनिासी" से जििेिी मुद्रा प्रबंध अजधजनयम, 1999 का 42 के अधीन भारत से बाहर जनिासी व्यजि अजभप्रेत होगा
और इसमें अतं राष्ट्रीय जित्तीय सेिा केंद्र की इकाइयां भी सजम्मजलत होंगी।
[फा. स.ं 3/15/2022-ईएम]
सुरजभ िैन, संयुि सजचि
MINISTRY OF FINANCE
(Department of Economic Affairs)
(FINANCIAL MARKET DIVISION)
NOTIFICATION
New Delhi, the 18th January, 2024
S.O. 291(E).—In exercise of the powers conferred by sub-clause (xiv) of clause (e) of sub-section (1) of
section 3 of the International Financial Services Centres Authority Act, 2019 (50 of 2019), the Central Government
hereby notifies the following as financial services, namely:-
1. book-keeping services;
2. accounting services;
3. taxation services; and
4. financial crime compliance services:
Provided that the financial services shall be offered by units in an International Financial Service Centre regulated by
the International Financial Services Centres Authority, to non-residents whose business is not set up either by –
(i) splitting up of business already in existence in India; or
(ii) reconstructing of business already in existence in India; or
(iii) reorganising of a business already in existence in India:
Provided further that the units shall not offer the services by way of transferring or receiving of existing contracts or
work arrangements from their group entities in India.
Explanation. - For the purpose of this notification -
(a). “financial crime compliance services” shall include services rendered in relation to compliances of Anti-Money
Laundering (AML) / Countering the Financing of Terrorism (CFT) measures and Financial Action Task Force
(FATF) recommendations, and other related activities;
(b). A “non-resident” shall mean person resident outside India under Foreign Exchange Management Act, 1999 (42
of 1999) and shall also include units in International Financial Service Centre .
[F. No. 3/15/2022-EM]
SURBHI JAIN, Jt. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.