Laxmi Sunrise inks deal with International Finance Corporation to combat financial abuse

KATHMANDU, DECEMBER 23 :Laxmi Sunrise Bank has signed an agreement with the International Finance Corporation (IFC) to combat financial abuse under the ‘Empower Finance Alliance,’ a pioneering initiative aimed at addressing financial abuse in Nepal. This partnership, announced yesterday, is supported by the Australian Government’s Department of Foreign Affairs and Trade. It represents a significant step toward enhancing financial security and promoting inclusive economic growth.

“With this partnership, we aim to drive systemic change by embedding standards within financial institutions to recognize and prevent abuse, while creating a safer environment for financial activities,” said Martin Holtmann, IFC Country Manager for Bangladesh, Bhutan, and Nepal.

Through the Empower Finance Alliance, IFC will provide Laxmi Sunrise Bank with universal principles to guide the development of safe banking products and services. This will help the bank define its role in preventing and responding to financial abuse, as well as conduct internal diagnostics to inform implementation.

“This partnership represents a significant advancement in addressing financial abuse—an often overlooked but critical issue in the banking sector,” said Ajaya Bikram Shah, Chief Executive Officer of Laxmi Sunrise Bank. “Together with IFC, we aim to redefine safety and inclusivity in financial services, set new industry benchmarks, and create a secure environment for vulnerable groups.”

Launched by IFC in August with support from the Government of Australia, the Empower Finance Alliance includes nine financial institutions from Nepal, Papua New Guinea, Sri Lanka, Vanuatu, and Vietnam, collectively serving more than 30 million customers. The Alliance collaborates with each institution to promote principles that guide the assessment, design, and development of safe banking products and services to minimize the risks of financial abuse.

This collaboration, as is claimed, reaffirms the shared vision of Laxmi Sunrise and IFC to create a safer, more equitable financial ecosystem.