Nepal Rastra Bank (NRB) has issued new guidelines requiring wallet companies to halt suspicious online transactions within 24 hours of being notified. The move places greater responsibility on Payment Service Providers (PSPs) to track and prevent potentially illicit transactions on their platforms.
The ‘Guidelines on Targeted Financial Sanctions for Payment Service Providers,’ issued Monday, assign PSPs the role of monitoring financial activities in line with the Financial Action Task Force (FATF) recommendations. In February, the FATF placed Nepal on its grey list, urging the country to track two categories of prohibited activities—those listed by the United Nations (UN) and Nepal’s own terrorism-related blacklist.
There are currently 10 PSPs operating in Nepal, including Nepal Clearing House, Smart Choice Technologies, Fonepay, FirstPay Technology, and Nepal Payment Solution. Their affiliated wallet companies—such as Khalti, eSewa, and MyPay—are now required to:
- Register with and subscribe to the UN’s integrated sanctions list.
- Monitor the Ministry of Home Affairs (MoHA) targeted portal for updates on restricted individuals and institutions.
- Conduct real-time transaction screening against both UN and government watchlists.
- Check current customer databases, transaction histories, potential customers, beneficiaries, and related parties for possible matches.
If a customer matches a suspicious individual or entity, the PSP must immediately suspend related transactions and report them to NRB’s Financial Information Unit within three days. These reports will be investigated by the Department of Money Laundering Investigation and the Inland Revenue Department, which may recommend blacklisting.
Nepal, as a UN member, is obligated to enforce targeted financial sanctions, including freezing assets linked to terrorism, terrorist financing, and the proliferation of weapons of mass destruction.
The NRB has warned that non-compliance with the guidelines could result in severe penalties, including revocation of operating licenses.
