On February 5, 2025, the International Financial Services Centres Authority (IFSCA) issued an important circular to all regulated entities operating within the GIFT-IFSC, detailing the procedure for the implementation of Section 12A of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (WMD Act) and Section 51A of the Unlawful Activities (Prevention) Act, 1967 (UAPA). The circular also brings to light a critical update regarding the change in the Nodal Officer for the execution of these provisions.
Key Changes in the Circular
The February 2025 circular issued by IFSCA signals a shift in the leadership for overseeing the implementation of these critical regulations. General Manager at the Division of Anti-Money Laundering and Combating the Financing of Terrorism (AML & CFT), has been designated as the new Nodal Officer responsible for the execution of Section 51A of the UAPA and Section 12A of the WMD Act. This change is a modification of the earlier circular and communication, which may have previously indicated a different officer for this role.
This change is important because the Nodal Officer serves as the central point of contact for all regulated entities in the GIFT-IFSC concerning compliance with these legal frameworks. The designation of a new Nodal Officer helps streamline operations and ensures that all financial and non-financial entities in the region stay in sync with the regulatory expectations and international compliance standards.
Available Resources and Further Actions
The IFSCA has also made provisions to ensure that the regulated entities have easy access to essential resources. Both the WMD Act and the UAPA-related lists and designations are available for reference on the IFSCA’s official website. These resources contain updated information regarding the sanctioned individuals and entities, making it easier for regulated bodies to remain in compliance with international sanctions.
Entities are encouraged to consult these resources regularly to stay informed about the designations that may affect their operations. Additionally, it is essential that all regulated entities appoint their own internal Nodal Officers who will coordinate with the IFSCA-appointed Nodal Officer and ensure timely reporting of relevant information.
