IFSCA Amends Book-keeping and Financial Crime Compliance Services Regulations by Omitting Regulation 12
The International Financial Services Centres Authority (IFSCA) has introduced amendments to the regulatory framework governing professional services within International Financial Services Centres through a notification dated January 5, 2026. This modification targets the regulatory structure applicable to entities providing book-keeping, accounting, taxation, and financial crime compliance services within the IFSC ecosystem.
Background of the Amendment
The IFSCA has issued the International Financial Services Centres Authority (Book-keeping, Accounting, Taxation and Financial Crime Compliance Services) (Amendment) Regulations, 2026, utilizing its statutory powers granted under sub-section (1) of Section 28, read with sub-section (1) of Section 12 of the International Financial Services Centres Authority Act, 2019. This amendment modifies the principal regulations that were originally notified on June 6, 2024, as G.S.R. 394.
The regulatory authority has taken this step to refine and streamline the compliance obligations imposed on service providers operating within the specialized financial zones designated as International Financial Services Centres. The amendment reflects the evolving regulatory approach toward maintaining an efficient yet robust framework for professional service providers in these strategic financial hubs.
Key Provisions of the Amendment Regulations
Nomenclature and Commencement
The amendment has been officially titled as the International Financial Services Centres Authority (Book-keeping, Accounting, Taxation and Financial Crime Compliance Services) (Amendment) Regulations, 2026. These regulations became effective immediately upon their publication in the Official Gazette, ensuring swift implementation of the regulatory changes.
Deletion of Regulation 12
The most substantive change introduced through this amendment is the complete omission of Regulation 12 from the principal regulations. This deletion represents a strategic decision by the IFSCA to remove a specific compliance provision that was previously mandatory for service providers. While the notification does not elaborate on the rationale behind this deletion, it indicates a move toward reducing regulatory burden or eliminating redundancies in the compliance framework.
The removal of Regulation 12 stands out as a focused intervention rather than a comprehensive overhaul of the regulatory structure. This surgical approach suggests that the Authority identified a specific provision that either overlapped with other requirements or was no longer deemed necessary for effective regulation of these professional services.
Consequential Amendment to Second Schedule
Following the deletion of Regulation 12, the IFSCA has made a corresponding adjustment to the Second Schedule of the principal regulations. Specifically, in item number 5 of the Second Schedule, the reference to "and 12" appearing after "regulation 11" has been removed. This ensures internal consistency within the regulatory framework and prevents any confusion regarding applicable provisions.
After this amendment, item number 5 of the Second Schedule now refers only to regulation 11, eliminating the cross-reference to the now-deleted Regulation 12. This modification maintains the logical coherence of the regulatory document and ensures that service providers are not directed to a non-existent provision.