NRB issues directive for agencies including Employees Provident Fund

Kathmandu, Feb 25: The Nepal Rastra Bank (NRB) has come up with a new arrangement for Employees Provident Fund, Citizen Investment Fund and Social Security Fund and institutions issuing loans for higher purchase on alleviating financial investment in money laundering and terrorist activities.     

Issuing a directive to these institutions on Tuesday, the central bank has directed them to make Know Your Customer (KYC) mandatory on the basis of citizenship or national identity card, identify and confirm high-ranking people, classify them, identify the families of high-ranking people and related people.     

These institutions will have to classify customers as high-ranking persons bearing office, high-ranking people not bearing office, high-ranking people from neighboring or nearby countries, other foreign high-ranking people and high-ranking people of international organizations.     

Similarly, the new arrangement has stipulated that they have to prepare the report of suspicious transactions and activities according to the procedure issued by the Financial Information Unit under the Nepal Rastra Bank.(RSS)