Sep 02, 2025: IFSCA and ASIC Sign MoU to Strengthen Regulatory Cooperation

The International Financial Services Centres Authority (IFSCA) and the Australian Securities and Investments Commission (ASIC) have signed a Memorandum of Understanding (MoU) to enhance inter-regulatory cooperation. The MoU aims to facilitate mutual assistance, share information on market trends and best practices, and collaborate on technology use and regulatory oversight. It also enables timely exchange of information on financial services events and compliance, supervision, and enforcement requirements for market participants in both jurisdictions.

Sep 19, 2025 – IFSCA Invites Feedback on Draft FinTech Sandbox Framework

The International Financial Services Centres Authority (IFSCA) has released a draft FinTech Sandbox Framework aimed at fostering innovation across financial services in IFSCs. The framework provides a structured regulatory environment for domestic and foreign FinTech entities to develop and test products across banking, capital markets, insurance, funds, and other financial services.

Key Highlights:

• Applicability: Open to domestic and foreign entities seeking a Limited Use Authorisation as a FinTech Sandbox Entity (FSE). Existing Limited Use Authorisations continue under the 2022 framework.
• Types of Sandboxes:
  1. Regulatory Sandbox (FRS): Live testing with real customers under controlled conditions.
  2. Innovation Sandbox (FIS): Testing in isolation using market-related data.
  3. Inter-Operable Regulatory Sandbox (IoRS): For hybrid products under multiple domestic regulators, with IFSCA as principal regulator.
  4. Overseas Regulatory Referral/FinTech Bridge: Collaboration with foreign regulators.
• Testing Stage: Maximum 12 months (extendable by 6 months), with defined boundary conditions, risk disclosures, and user consent requirements.
• Evaluation: Based on innovation, benefits to users, risk management, and feasibility for deployment.
• Regulatory Relief: Conditional relaxations may be granted for sandbox testing.
• Exit & Revocation: Clear protocols for early exit, expiry, or revocation of sandbox authorisation.
• Reporting & Compliance: FSEs must maintain records, submit interim/final reports, and comply with regulatory obligations including financial reporting in foreign currency.

Eligible Activities: FinTech ideas/products must be linked to activities regulated by IFSCA, including capital markets, banking, insurance, pensions, metals & commodities, financial support services, and other areas approved by the Authority.

Sep 22, 2025: IFSC Authority Seeks Public Feedback on Internet Banking Services for IBUs

The International Financial Services Centres Authority (IFSCA) has initiated a public consultation on its draft circular reviewing internet banking services provided by IFSC Banking Units (IBUs). The consultation invites comments on three categories of services: Information Service, Interactive Information Exchange Service, and Transactional Service.

Key highlights of the draft circular include:

• Information Services: IBUs must display currencies offered for transactions and clearly communicate transaction cut-off timings.
• Interactive Services: IBUs are required to provide a unified digital dashboard for real-time balances, live currency conversion rates, downloadable account statements in machine-readable formats, inward remittance instructions, deposit withdrawals, and SMS/email transaction alerts.
• Transactional Services: Internet banking platforms should include dual-layer authentication, fund transfers (internal and external), fixed deposit creation, corporate user access management, pre-approved beneficiary lists, currency conversion, auto-scheduled payouts, and validation tools to prevent errors and regulatory breaches.

Compliance Deadline: IBUs must adhere to the circular by March 31, 2026.