Streamlined Processes: Simplifying GIFT City Registration for Non-Resident Indians
In a significant move to streamline the registration and compliance procedures for Non-Resident Indians (NRIs) in India's GIFT City, the International Financial Services Centres Authority (IFSCA) has proposed a video-based customer identification process (V-CIP). This innovative approach aims to eliminate traditional barriers and promote ease of doing business in the special economic zone.
The V-CIP process allows NRIs to remotely verify their credentials and complete mandatory Know Your Customer (KYC) requirements through a live video interaction with an authorised representative. This could potentially include employees from banks or financial services, or authorised agents.
During the video call, NRIs will present their identification documents on screen for verification. These documents may include passports, Aadhaar-linked credentials, or other government-issued IDs. For NRIs with Aadhaar linkage, e-KYC facilitates identity authentication electronically via One-Time Password (OTP) sent to the registered mobile number linked with Aadhaar, thereby eliminating the need for physical document submission.
The IFSCA's proposal also includes allowing regulated entities like brokerages or exchanges to conduct Customer Due Diligence (CDD) through an online interaction (V-CIP). The CDD process involves collecting personal or business identification information, legal domicile, current residential address, trading name, tax identification number, place of registration, and terms and connected persons (in case of a legal arrangement).
To ensure the security and integrity of the V-CIP process, the IFSCA has proposed measures to prevent connections from spoofed IP addresses. These measures include video recordings with live GPS coordinates and date-time stamp, face liveness/spoof detection, face matching technology, and AI technologies with randomness, anti-deep fake, and anti-fraud checks.
It is important to note that the risk of identity fraud and IP spoofing has been a concern in the past, hence the V-CIP is currently not allowed for all NRIs. However, the IFSCA has proposed allowing a video-based customer identification process for NRIs from certain jurisdictions, such as the US, Japan, South Korea, the UK (excluding British Overseas Territories), France, Germany, Canada, the UAE, Singapore.
The authorised officials for NRIs include an authorised executive of a bank located in a jurisdiction compliant with rules of the Financial Action Task Force (FATF), notary public, a court magistrate or judge, lawyer, embassy or consulate general of the country where the non-resident individual lives.
In conclusion, the V-CIP is a technology-enabled, video-driven identification process that allows NRIs to remotely verify their credentials and complete mandatory KYC requirements for financial and investment purposes in GIFT City, significantly easing the traditional verification bottlenecks. The proposal aims to reduce onboarding barriers and promote ease of registration and compliance in the special economic zone.
The V-CIP process, integrated with technology, enables NRIs to complete their KYC requirements for financial businesses seamlessly, even from remote locations. This innovation also allows regulated entities like brokerages or exchanges to conduct detailed CDD through online interactions, streamlining the regulatory compliance process in the GIFT City.
