AML/CFT stands for Anti-Money Laundering & Combating the Financing of Terrorism. In Nepal, AML/CFT mechanism is struggling to thrive. However, Banks in Nepal are primarily adopting and improvising their AML/CFT mechanism. Also, Nepal Rastra Bank has imposed heavy fines, penalties and prosecution to bring Banks into a strong AML/CFT curve. Recently, Financial Information Unit of Nepal Rastra Bank(NRB) has implemented goAML live Environment system for “A” class Banks (i.e Commercial Banks).
Some of the Key measures adopted by Banks in Nepal for strengthening its AML CFT mechanism are:-
- KYC (Know Your Customer)
Banks before onboarding a customer, ask customer to fill up his personal details like Date of Birth, ID, Father Name, Mother Name, Grandfather Name, full address etc. along with declaration that the details mentioned in the form are true and correct. This approach urges banks to know customer before establishing relations with them. Unified Directive no. 19 of Nepal Rastra Bank illustrates the information to be obtained from customer.
- AML/CFT committee
Nepal Rastra Bank has mandated every Banks to establish a AML/CFT committee for oversight of AML/ CFT mechanism & evaluation of effectiveness of AML/CFT policy of respective Banks.
- AML Implementing Officer
Nepal Rastra Bank has mandated every Bank to appoint a AML implementing Officer who will be responsible for establishing, amending, implementing and revaluating AML/ CFT mechanism.
- goAML Live Reporting Mechanism- implementation
NRB has mandated the commercial banks to report Threshold Transaction Report (TTR), Suspicious Transaction Report (STR) & Suspicious Activity Report (SAR) through goAML live reporting platform. Also, NRB is implementing goAML at next phase for rest of categories of banks.
To know about Social Security Fund in detail, click here: https://camunchnepal.com/articles/law/social-security-fund-in-nepal/
If you want to read AML CFT acts and rules, click here, https://www.nrb.org.np/fiu/act.php