Nepal’s AML/CFT Regulators: A Shield Against Financial Crimes

In the Himalayan nation of Nepal, financial crime regulations have become increasingly important. Several key entities are tasked with ensuring adherence to Anti-Money Laundering/Counter-Terrorism Financing (AML/CFT) measures. This article outlines Nepal’s primary financial crime regulators and their roles.

Nepal Rashtra Bank (NRB)

Established in 1956
Central bank of Nepal
Sets monetary and foreign exchange policies
Develops a secure, healthy, and efficient financial system

Securities Board of Nepal (Sebon)

Established in 1993
Apex regulator of Nepal’s securities market
Enforces securities regulations
Supervises matters related to securities

Financial Information Unit (FIU-Nepal)

An independent unit within NRB
Established in 2008
Nepal’s national agency for revealing financial information
- Receives, processes, analyzes, and disseminates information
- Supports law enforcement agencies and foreign FIUs

Complying with AML/CFT Regulations in Nepal

As a designated service provider, implement effective AML/CFT policies. Key components include:

Consistent CDD procedures, risk profiling, and monitoring
Robust management oversight, processes, controls, and adequate training
Proper identification and updating of Ultimate Beneficial Owners (UBOs)

Reporting Obligations in Nepal

As a designated service provider, you’re legally obliged to report suspicious activities to FIU-Nepal:

Threshold Transaction Reports (TTRs)

Filing within 15 days of the transaction for amounts exceeding a threshold limit
- Banks and financial institutions: deposit or withdrawal of Rs 1 Million
- Real estate businesses: property purchase or sale of Rs 10 million and above

Suspicious Transaction Reports (STRs)

Filing within 3 days of the reportable transaction identification

Maintaining Records

Maintain records for a minimum of 5 years.

Adhering to these regulations is crucial in the fight against money laundering and terrorism financing in Nepal.