The Nepal Securities Board (SEBON) has issued new guidelines on financial sanctions, instructing securities market participants to comply with anti-money laundering regulations. These guidelines were formulated under Rule 69(3) of the Asset Laundering (Money Laundering) Prevention Regulations, 2081 BS.
According to the guidelines, securities market participants must verify whether any individuals, groups, or organizations sanctioned by the United Nations, as listed on Nepal’s Ministry of Home Affairs website, are engaged in transactions. They are also required to establish an updated system to regularly track such entities in securities transaction records.
SEBON has directed market participants to freeze any assets or funds belonging to or linked with sanctioned individuals, groups, or organizations. The guidelines further require participants to prevent financial investments that could contribute to terrorist activities or the development and proliferation of weapons of mass destruction (WMDs).
Additionally, SEBON has mandated that any suspicious individuals involved in terrorist activities or WMD proliferation financing be reported to the Financial Information Unit (FIU).
