Financial Crime World

Himalayan Bank’s New AML/CFT Policy: Strengthening Commitment to Prevent Financial Crimes

Himalayan Bank Ltd (HBL), Nepal’s leading financial institution, has announced the latest revision to its Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Know Your Customer (KYC) policy. Effective from September 2022, the new policy, approved by the Board of Directors in their meeting #423, aims to strengthen HBL’s commitment to preventing financial crimes.

Key Features of the New Policy

  • Adherence to International Standards: The new policy aligns with the latest international AML/CFT standards.
  • Scope: Applies to all classes of financial institutions licensed by the Nepal Rastra Bank (NRB).
  • Three-Part Document: Consists of three parts: general provisions, definitions and general information, and procedural guidelines to prevent money laundering (ML) and terrorist financing (TF) activities.

Contents of the New Policy

Part A: General Provisions and Definitions

This section includes:

  • Definitions of key terms
  • Details of the AML/CFT Committee, Unit, Board, Chairman, CEO, Competent Authority, Compliance Department, Customer, and more

Part B: HBL’s Policies and Procedures

This section focuses on:

  • Adherence to the Financial Action Task Force (FATF) guidelines
  • Compliance with the Asset (Money) Laundering Prevention Act, 2008
  • Customer identification procedures
  • Exception to customer identification
  • Reporting of suspicious transactions
  • Monitoring of account transactions

Key Elements of the New Policy

  • Enhanced Customer Due Diligence (ECDD):Focuses on understanding the business purpose and risk involved in each transaction.
  • Monitoring of Account Transactions: Regular evaluation of transactions to identify unusual account activity.
  • Reporting Obligations: Reporting transactions deemed suspicious to the Financial Information Unit (FIU) and other concerned authorities.

Newest Additions

Apart from its commitment to combating ML and TF, the new policy includes provisions to address:

  • FATF recommendations
  • International best practices
  • Regular training and awareness programs for staff and customers

Conclusion

The updated AML/CFT policy highlights HBL’s dedication to maintaining the integrity of Nepal’s financial system and safeguarding its reputation as a trusted financial institution. By focusing on enhanced customer due diligence, monitoring account transactions, and reporting obligations, HBL strengthens its fight against financial crimes.