Fit and proper requirements require a BATF Service Provider to ensure that the entity and its principal officer, directors, partners, designated partners, key managerial personnel and controlling shareholders maintain fairness, integrity, financial integrity, good reputation, character and honesty. Disqualifications include relevant criminal convictions, pending recovery proceedings, winding-up for malfeasance, undischarged insolvency, regulatory restraints or orders within stipulated periods, unsoundness of mind, financial unsoundness, wilful default, fugitive economic offender status, and other specified disqualifications.

Registration may be granted to a BATF Service Provider subject to specified conditions. If deficiencies prevent grant, the applicant must be informed and given thirty days to rectify them, with a reasonable opportunity to make written submissions before rejection. A certificate remains valid unless cancelled or surrendered, and surrender requires approval. The BATF Service Provider must report material changes in previously furnished information.

Registration for BATF Services requires an application for a certificate of registration in the prescribed format and manner, accompanied by the specified non-refundable fee. Incomplete applications are liable to rejection. Applicants must be established in an IFSC as a company or limited liability partnership, and their promoters must be from jurisdictions not identified in the Financial Action Task Force public statement as high-risk jurisdictions subject to a call for action.

BATF Services in an IFSC require a certificate of registration, except for an Ancillary Service Provider. An Ancillary Service Provider intending to provide such services must communicate its willingness to operate within sixty days of commencement, in the specified form and manner. Until it receives a letter of continuation, the provider must comply with the requirements under regulations 8 and 9.

BATF Services comprise book-keeping, accounting, taxation and financial crime compliance services within the IFSC regulatory framework. A BATF Service Provider is an entity registered to undertake any or all of those service categories. Book-keeping excludes payroll and taxation services, while accounting includes non-assurance financial statement work and related valuation support but excludes auditing. Taxation services include consultation, planning, return preparation and filing, and financial crime compliance services cover AML/CFT measures and FATF-related activities.

Regulation 2 establishes the objective of creating a regulatory framework for developing, registering and operating book-keeping, accounting, taxation and financial crime compliance services from International Financial Services Centres.

The International Financial Services Centres Authority (Book-keeping, Accounting, Taxation and Financial Crime Compliance Services) Regulations, 2024 are made under the International Financial Services Centres Authority Act, 2019. Regulation 1 prescribes their formal title and provides that they take effect on the date of publication in the Official Gazette.

From commencement, specified insurance regulatory instruments, together with circulars and guidelines issued under them, cease to apply in International Financial Services Centres. The non-applicability covers insurance business matters including capital, policyholder protection, outsourcing, disclosures, expenses, and commission. Prior actions under the displaced framework are preserved through deeming under corresponding provisions. Existing IIOs and IIIOs must meet additional requirements within three months, subject to an extended period specified by the Authority.

Registered persons who inadvertently filed a NIL refund claim may reapply for the same period, subject to prescribed conditions. A subsequent-period refund claim under the same category prevents reapplication only for specified unutilized input tax credit refund categories. Eligible persons must file under the "Any Other" category, submit required supporting documents, and, where required, debit the admissible amount from the electronic credit ledger through FORM GST DRC-03 before issuance of the refund and payment orders.

The Authority may issue guidance notes or circulars to clarify difficulties in applying or interpreting insurance business control and conduct requirements. On a fee-backed application, it may relax strict enforcement of any requirement where reasons are recorded in writing.

Regulation 21 authorises the Authority to specify norms, procedures, processes and modes of compliance for IIOs or IIIOs, as relevant, to implement the regulatory framework and incidental matters. These operational requirements apply to management control, administrative control and market conduct in the insurance business.

Every IIO must furnish information concerning regulatory requirements to the Authority or policyholders in the prescribed manner, at prescribed intervals and in prescribed forms. IIOs must follow fairness to policyholders, international best practices and transparency to strengthen trust in insurance mechanisms and promote insurance awareness and literacy.

Every IIO and IIIO must formulate a Board-approved policy safeguarding policyholders' interests. The policy must address insurance awareness, fulfilment of policyholder obligations, prevention of mis-selling and unfair practices, accurate product disclosures, service parameters, grievance redressal, complaint resolution, sale and service practices, and transparent claims settlement. Every IIO must publish and update Board-approved service parameters and turnaround times on its website, and submit the policy when directed.

IIOs and IIIOs must issue advertisements using fair, honest and transparent practices that preserve public confidence. Advertising communications must be relevant, fair, simple, truthful, accurate, capable of substantiation, and compliant with applicable advertising standards and Indian law. Each entity is responsible for the accuracy of advertisements issued on its behalf. An IIO must ensure that policies issued to policyholders conform to its advertisements.

Every IIO permitted to transact life insurance business and dealing with pension and annuity products must design those products to address policyholders' actual needs rather than operate as symbolic offerings. An IIO dealing with pension and annuity products must not pay or undertake to pay less than the minimum amount specified by the Authority.

Every IIO permitted to transact life insurance business must disclose the conditions under which a life insurance policy acquires surrender value and the formula for computing it from paid-up value. It must also maintain provisions for timely surrender-value payments in respect of linked and non-linked life insurance policies, based on paid-up values.

Life insurance IIOs must maintain separate funds for participating and non-participating policyholders and adopt a Board-approved policy governing surplus distribution. Relevant surplus-distribution provisions must be disclosed to policyholders and reflected in the IIO's books of account. The approved policy must be furnished to the Authority whenever directed.

Confidential information may be disclosed only on a written request for lawful duties and is subject to custodial protection, professional secrecy and consent safeguards. Non-public information requires a case-specific shareability assessment based on the purpose of the request, non-proprietary character, confidentiality protections and reciprocity. Disclosure must account for potential commercial harm, competitive misuse, and risks to the stability of regulated entities or the insurance industry. Multilateral Memorandum of Understanding obligations prevail where inconsistent.

Every IIO must manage outsourcing risks prudently to prevent adverse systemic effects and protect policyholder interests. Outsourced activities require effective oversight, responsive management practices, adequate due diligence and protection of policyholder data privacy. Before sharing policyholder-related data, an IIO must execute a non-disclosure agreement with the outsourcing agency or include equivalent confidentiality provisions in the service level agreement. Further outsourcing requirements may be specified by the Authority.

Every IIO must maintain a Board-approved policy governing procedures for opening and closing places of business. Prior approval of the Authority is required before opening or closing a location. On closure, the IIO must mitigate associated risks by providing alternative facilities to existing policyholders, maintaining uninterrupted access to insurance services, and ensuring continued servicing of claims.