Kathmandu: The Nepal Rastra Bank (NRB) has unveiled a new directive aimed at the Employees Provident Fund, Citizen Investment Fund, Social Security Fund, and agencies providing higher purchase loans, with the goal of curbing financial investments linked to money laundering and terrorist activities. This measure highlights the central bank’s commitment to strengthening financial regulation and oversight.
According to National News Agency Nepal, the directive, released on Tuesday, mandates these institutions to implement Know Your Customer (KYC) protocols based on citizenship or national identity cards. The directive further instructs the classification and identification of high-ranking individuals and their associates, necessitating a distinction between various categories of high-ranking persons.
These classifications include high-ranking individuals holding office, those not holding office, high-ranking persons from neighboring or nearby countries, other foreign dignitaries, and officials from international organizations. The institutions are required to prepare reports on suspicious transactions and activities, adhering to the procedures established by the Financial Information Unit under the Nepal Rastra Bank.
This initiative represents a strategic effort by the NRB to enhance the financial sector’s resilience against illicit financial flows and to ensure compliance with international standards in financial transparency and accountability.