Nepal Rastra Bank (NRB)’s Foreign Exchange Management Department has introduced regulations asking remitters and money changers to inform the Financial Information Unit (FIU) of NRB about any transaction that is over the limit within a fortnight of the transaction.
The directive has asked all financial institutions and remittance service providers to report to the FIU about transactions conducted by a single entity which exceeds Rs one million within 15 days of the transaction.
Likewise, if anyone sends money within Nepal or to bordering areas of the country –– in single or multiple transactions –– in a single day that exceeds Rs one million also needs to be reported by the remitters. Similarly, financial institutions, money changers or any other institution such as hotels, travel agencies or courier companies that are allowed to exchange foreign currency, have to report about any foreign currency exchanged by a single entity that exceeds US $5000 to FIU within 15 days of the transaction.
“Institutions involved in money transfer or currency exchange have to be vigilant in detecting any attempt of transferring money without a legitimate source,” pointed out spokesperson for the central bank Bhaskar Mani Gyanwali. “Though NRB had already issued directives to prevent money laundering in 2009, this fresh directive will further provide clear cut procedures that need to be followed as per the AML Act,” he added.
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