NRB introduces new measures to prevent money laundering, terror financing

KATHMANDU, FEBRUARY 26: The Nepal Rastra Bank (NRB) has introduced a new directive for the Employees Provident Fund, Citizen Investment Trust, Social Security Fund, and institutions issuing higher-purchase loans to prevent financial investment in money laundering and terrorist activities.

In a directive issued yesterday, the central bank has mandated these institutions to enforce Know Your Customer (KYC) procedures based on citizenship or national identity cards. They are also required to identify and verify high-ranking individuals, classify them, and monitor their families and associates.

As per the new arrangement, customers must be categorized into high-ranking individuals holding public office, high-ranking individuals not holding public office, high-ranking individuals from neighboring or nearby countries, other foreign high-ranking individuals, and high-ranking individuals from international organizations.

Additionally, these institutions must prepare reports on suspicious transactions and activities in accordance with procedures set by the Financial Information Unit under the central bank.