Global In-House Centre - Captive Support Entities in the IFSC
What this domain tests
The GIC domain tests IFSCA's framework for Global In-House Centres - captive support entities set up in GIFT-IFSC by regulated financial groups - and how they differ from third-party service providers.
Core rules
- A GIC is a captive entity: it provides services only to its own group and cannot solicit or accept third-party business.
- The parent must be a regulated financial institution or financial group; the GIC is registered with IFSCA, not licensed as a bank or insurer.
- Permitted work is support work: technology and platforms, operations and back-office processing, risk analytics, compliance and AML screening, treasury and reporting support, HR/payroll and finance functions for group entities.
- A GIC cannot undertake activity that requires a separate licence - taking deposits, writing insurance, dealing in securities or holding client money.
- Services are exported to group entities abroad, so the entity is built around foreign-exchange earnings; intra-group pricing must be arm's length for transfer-pricing purposes.
- Ongoing obligations: annual reporting to IFSCA, intimation of change of control, and adherence to AML/CFT standards.
Worked example
A UK banking group wants a GIFT-IFSC centre running KYC/AML screening and reconciliation for its London and Singapore branches. This is a textbook GIC: all work is for group entities, there are no third-party clients, no regulated activity and no client money. If the same centre wanted to process KYC for an unrelated Indian broker for a fee, it would fall outside the GIC framework and into the BATF regime, or need a separate registration.
Traps that cost marks
Confusing GIC (captive only) with BATF (may serve third parties); assuming a GIC needs a banking or insurance licence; assuming the GIC can hold or pool client funds; forgetting transfer pricing on intra-group charges.