Nepal Rastra Bank (NRB) has implemented new measures aimed at curbing financial investments linked to money laundering and terrorist activities. The regulations target institutions such as the Employees Provident Fund (EPF), Citizen Investment Trust (CIT), Social Security Fund (SSF), and organizations issuing hire-purchase loans.
The central bank issued a directive on Tuesday requiring these institutions to enforce Know Your Customer (KYC) processes based on citizenship or national identity cards. Additionally, they must identify, classify, and verify high-ranking individuals, along with their families and associates.
Under the new directive, institutions must categorize customers into various groups: high-ranking officeholders, high-ranking individuals not in office, high-ranking persons from neighboring countries, other foreign high-ranking individuals, and those affiliated with international organizations.
The measures also mandate institutions to prepare reports on suspicious transactions and activities, following the guidelines set by the Financial Information Unit under NRB.
