Financial Crime World

Bank Committed to Preventing Money Laundering and Terrorist Financing

Introduction

Kathmandu, [Date] - [Bank Name], a leading financial institution in Nepal, has reaffirmed its commitment to preventing money laundering (ML) and terrorist financing (TF). The bank’s policy aims to prevent the misuse of its services by criminal elements and protect its employees, customers, and reputation.

Compliance with FATCA and NRB Guidelines

The Foreign Accounts Tax Compliance Act (FATCA) requires [Bank Name] to comply with US law and NRB guidelines. As part of this commitment, the bank has implemented robust measures to ensure that all transactions are legitimate and transparent.

Definition of Family Member

The bank’s policy defines a family member as per BAFIA regulations, including:

  • Husband/wife
  • Son/daughter-in-law
  • Daughter/adopted son/daughter
  • Father/mother
  • Stepmother
  • Elder brother/sister-in-law
  • Younger brother-in-law
  • Sisters

This definition is crucial in identifying potential risks associated with ML and TF.

Collaboration with Egmont Group of Financial Intelligence Units (FIUs)

[Bank Name] has joined the Egmont Group of FIUs, a network of 167 FIUs worldwide that share information on suspicious financial activity to combat money laundering and terrorism financing. Through this collaboration, the bank can access critical intelligence and best practices in AML/CFT compliance.

Prevention of Modern Slavery and Human Trafficking (MSHT)

The bank is committed to preventing MSHT by ensuring that all transactions are carried out in a transparent and ethical manner.

Prevention of Payable Through Accounts (PTAs) Facilities

[Bank Name] does not provide PTA facilities to its customers or correspondent partners. PTAs allow third parties to access accounts directly, which can increase the risk of ML and TF.

Definition of Conductors

The bank has defined conductors as natural persons who carry out transactions on behalf of others or themselves. The bank requires accurate information about these individuals while reporting through goAML software.

Bank’s Policy Objectives

The bank’s policy aims to prevent ML and TF by:

  • Preventing the bank from being a source/platform for channeling monies earned through illegal means
  • Protecting its reputation by not having any association with criminals or facilitating them in handling proceeds of crime
  • Protecting employees from risks associated with ML activities
  • Complying with local laws, international financial institution requirements, and NRB guidelines
  • Participating in national and international efforts to combat ML and TF

Know Your Customer (KYC) Policy

The bank’s KYC policy is essential for ensuring the safety and ethical standards of its operations. The policy requires accurate customer information to manage ML risks effectively. The key elements of the KYC policy include:

  • Customer Identification Procedures (CIP): Accurate identification of customers
  • Customer Acceptance Policy (CAP): Assessment of customer risk and suitability for banking services
  • Customer Transaction Monitoring Procedures (CTMP): Ongoing monitoring of customer transactions to detect suspicious activity
  • Risk Management (RM): Identification, assessment, and mitigation of ML risks

By implementing these measures, [Bank Name] is committed to preventing money laundering and terrorist financing while providing a secure and reliable banking experience for its customers.