On 17 November 2025, the International Financial Services Centres Authority (IFSCA) issued an important circular introducing a mandatory certification requirement aimed at strengthening the Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT), and Know Your Customer (KYC) compliance ecosystem across the International Financial Services Centre (IFSC). The circular, addressed to all regulated entities in the IFSC, outlines the introduction of a new customized certification course designed specifically for compliance leaders operating in India’s global financial hub.
This regulatory move references Clauses 8.2 and 8.4 of Chapter VIII of the IFSCA (AML, CFT and KYC) Guidelines, 2022, which detail the compliance responsibilities and training standards expected of Principal Officers and other key employees. These clauses emphasize the need for adequate knowledge, continuous training, and consistent alignment with AML/CFT regulatory standards. By issuing this mandate, IFSCA aims to ensure that the individuals occupying the most critical AML/CFT roles are equipped with the right expertise to uphold financial integrity in the IFSC.
In this context, IFSCA—through a collaborative initiative between the National Institute of Securities Markets (NISM) and the IFSCA Academy—has introduced a new specialized qualification titled:
“NISM-IFSCA-01: Certification Course on Anti-Money Laundering and Counter-Terrorist Financing in the IFSC.”
Scheduled for launch on 18 November 2025, this certification has been specifically tailored to the regulatory framework and operational requirements unique to the IFSC. Unlike generic AML/CFT certifications, this course has been developed to fully align with the IFSCA (AML, CTF and KYC) Guidelines, ensuring targeted training that accurately reflects the regulatory expectations in GIFT City’s international financial environment.
Who Must Take the Certification?
The circular mandates that all Designated Directors and Principal Officers appointed under the IFSCA AML/CFT/KYC Guidelines must:
- Successfully complete the NISM-IFSCA-01 certification course, and
- Maintain a valid certification at all times while performing their assigned compliance responsibilities.
This means the certification is not a one-time requirement but an ongoing compliance obligation. Maintaining validity may involve periodic renewals or re-certification, depending on the course design and regulatory expectations.
Why This Matters
Money laundering and terrorist financing risks continue to evolve rapidly, especially in cross-border financial centres like the IFSC. As financial products grow more sophisticated and global integration deepens, regulators increasingly emphasize robust AML/CFT controls, skilled oversight personnel, and standardized training.
By mandating this role-specific certification, IFSCA is taking a proactive step to:
- Strengthen the IFSC’s reputation as a clean and well-regulated global financial jurisdiction
- Ensure consistent, high-quality AML/CFT compliance across all regulated entities
- Equip compliance heads with updated regulatory knowledge and practical tools
- Reduce vulnerabilities arising from skill gaps or inconsistent training standards
Conclusion
The introduction of the NISM-IFSCA-01 certification represents a strong regulatory push toward professionalism and enhanced governance in IFSC’s compliance landscape. All regulated entities should take prompt steps to enroll their Designated Directors and Principal Officers, ensuring uninterrupted compliance and alignment with the new mandate. As IFSC continues to grow as an international financial hub, such initiatives play a crucial role in safeguarding its integrity and global trust.