KATHMANDU: Nepal Rastra Bank (NRB) has ordered that anyone opening a bank account in Nepal must present their National Identity Card (National ID) starting of January 14. This obligation is covered by a revised unified instruction that the central bank released on Thursday.
The National ID must be used when creating an account, according to instructions from the NRB to banks and financial institutions (BFIs). The circular states that BFIs must use the information kept in the National ID's electronic record system for this purpose.
BFIs may use electronic means to verify and authenticate customers based on the electronic records of their Nepali citizenship certificate or National ID, as per Rule 3 of the applicable regulations.
Exceptions are made for accounts opened to receive payments under the government’s social security schemes. However, BFIs are required to verify the identity of account holders when funds are withdrawn from such accounts.
In order to verify that they are registered under the consumers' names, BFIs must also validate the mobile numbers of their clients. This measure guards against the abuse of phone numbers associated with accounts and guarantees that customers are accurately identified.
To find financial transactions involving suspect parties for individuals, groups, or organizations that the Ministry of Home Affairs has reported, BFIs must maintain an up-to-date system. If such transactions are discovered, accounts must be blocked and reported to the NRB's Money Laundering Prevention Supervision Division within three days.
Additionally, the directive mandates that BFIs create a distinct category for high-ranking government and international organization personnel. In order to monitor any close ties with these officials, their details must be kept on file for a maximum of ten years following their retirement.
In order to ensure compliance with the new standards and facilitate the identification of high-profile connections, BFIs have been instructed to update customer information by Tuesday.
As part of the directive, BFIs must assess and monitor financial transactions based on risk levels. Particular attention must be given to individuals linked to corruption, tax evasion, human trafficking, casino operations, bullion trading, real estate, and cooperatives.
BFIs must report any suspicious financial activities to the NRB’s Financial Information Unit. To enhance vigilance, BFIs are required to establish dedicated units specifically for monitoring and tracking such transactions.
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