Banks to keep track of customers

The central bank has asked banks and financial institutions to have records of their clients under Know Your Customer.

The directives issued for the first time by the financial information unit (FIU) under Nepal Rastra Bank (NRB) also asked banks and financial institutions to inform the unit of suspicious transactions.

The central bank, the regulator of the financial market, has directed customers to provide detailed information to their banks and financial institutions. “Banks and financial institutions also have to notify about transactions that are over the limit,” NRB said in a bid to check the money laundering that poses a serious threat to the country’s financial stability.

NRB brought Anti Money Laundering Regulation-2066 on August 17, 2008. “Banks and financial institutions should maintain records of their customers with clear details,” said FIU-NRB.

Licenced banks and financial institutions should implement the directive by preparing internal regulations, it said.
Source: THT