Financial Crime World

Here is the rewritten article in Markdown format:

Integrated AML/CTF and KYC Policy for Effective Implementation of Legal Instruments

Kathmandu, Nepal - The [Bank/Financial Institution] has introduced an integrated Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) policy aimed at establishing a robust mechanism to prevent and detect money laundering, terrorist financing, and other financial crimes.

Objectives

The AML/CFT and Know Your Customer (KYC) Policy aims to:

  • Develop a sound mechanism for AML/CFT compliance measures as per legal, regulatory, and international banking practices.
  • Adopt a Risk-Based Approach (RBA) and functional adequate system controls.
  • Have a robust customer identification system in line with the effective implementation of KYC and Customer Due Diligence (CDD) Program.
  • Develop a mechanism against suspicious transactions and have a stronger monitoring and reporting to regulatory bodies as and when necessary.

Regulatory Requirements

The [Bank/Financial Institution] is required to apply a risk-based approach to identify, assess, monitor, manage, and mitigate AML/CFT risks, including:

  • Country reports on national and sectoral risk evaluation.
  • Reports of renowned international institutions on AML/CFT.
  • Business relationship, nature, and transaction threshold.

AML/CTF Compliance Framework

The [Bank/Financial Institution] has established an AML Committee at the board level, comprising a designated board member as coordinator, Head of Risk Management, and other senior officials. The committee is responsible for reviewing and approving the AML/CFT policy, procedures, and guidelines.

Action Plan

The [Bank/Financial Institution] will develop annual plans and programs to implement its AML/CFT system and conduct regular reviews and annual appraisals to ensure functionalism, effectiveness, and further enhancement. The action plan includes:

  • Screening of customers while onboarding.
  • Obtaining KYC information.
  • Risk profiling.
  • Customer due diligence as per risk profile and periodic update.
  • Transaction monitoring.
  • Due diligence of correspondent banks.
  • Threshold transaction reporting.
  • Suspicious activity & transaction monitoring and reporting.
  • Screening of counterparty in cross-border trade and remit transactions.
  • Implementation of instructions of Law enforcement agencies.
  • Maintaining confidentiality of customer’s information.
  • Retention of records.
  • Training & capacity building of human resources.

KYC/CDD Policy

The [Bank/Financial Institution] has introduced a KYC/CDD policy to identify and verify customers about their identity, address, transactions, profiles based on risk-based approach, and adopting required measures to protect the bank from being means of money laundering. The policy requires due diligence while establishing business relationships.

Conclusion

The integrated AML/CFT and KYC Policy is a crucial step towards ensuring the [Bank/Financial Institution]’s compliance with relevant laws and regulations, as well as maintaining its reputation and integrity in the financial sector. The policy aims to prevent and detect money laundering, terrorist financing, and other financial crimes, while also protecting customers’ information and interests.

Note: This article is a rewritten version of the original text for media purposes. It has been adapted to fit the format and style of a news article.