NRB implements new measures to combat money laundering

KATHMANDU: Nepal Rastra Bank (NRB) has introduced new measures targeting the Employees Provident Fund (EPF), Citizen Investment Trust (CIT), Social Security Fund (SSF), and institutions issuing loans for hire purchase, to mitigate financial investments in money laundering and terrorist activities.

The central bank on Tuesday issued a directive mandating these institutions to implement Know Your Customer (KYC) processes based on citizenship or national identity cards. Additionally, they are required to identify and confirm high-ranking individuals, classify them, and identify the families and associates of these high-ranking persons.

Institutions must categorise customers as high-ranking persons holding office, high-ranking individuals not holding office, high-ranking persons from neighbouring countries, other foreign high-ranking individuals, and high-ranking persons from international organisations.

The new measures also require the preparation of reports on suspicious transactions and activities in accordance with the procedures issued by the Financial Information Unit under the NRB.