Nepal Rastra Bank (NRB) has implemented a simplified customer identification (KYC) process for transactions up to Rs 100,000 for licensed institutions that perform payment related activities other than banks and financial institutions.
NRB issued a circular to the payment service providers today asking them to implement simplified customer identification (KYC) for commercial transactions of up to Rs 100,000 per year.
“According to the provisions of the Money Laundering Prevention Act, 2064 and the Money Laundering Prevention Rules 2073, such organizations can follow the process of simplified customer identification when they associate merchants with annual transactions of up to Rs 100,000.
In this way, NRB has also specified the criteria and procedures to be adopted for simplified customer identification and merchant verification. A separate form will have to be filled to link the customer through the simplified KYC process. In the form, the business or merchant’s name, address, nature of business, geographical area of business, estimated number and amount of monthly transaction must be disclosed.
According to NRB, new issues have been added to the existing provisions related to money laundering and prevention of financing terrorist activities applicable to payment providers other than banks and financial institutions. In which the criteria, method and process of connecting merchants through the simplified KYC system are included.
According to the new regulations, businesses and merchants who conduct commercial transactions will have to submit business registration, documents confirming the existence or activity of the business, VAT or PAN registration details, video or photo verification by on-site inspection of the business, and any two details of the nature of the business, the geographical area of the business and the details of the business number. .
Likewise, payment service providers must identify and confirm the owner of the relevant business. While identifying in this way, details such as the name, address, contact number, citizenship or national identity card number of the proprietor must be provided.
