As of January 14, it is obligatory for anyone wishing to create a bank account to present a national identity card (National ID) to the Nepal Rastra Bank (NRB).
The central bank requested that banks and financial institutions (BFIs) take into account the National ID when creating bank accounts on Thursday, enforcing a modified unified regulation. According to the NRB circular sent to the BFIs, “In order to open bank accounts using the information of people kept in the electronic record system under National ID, the BFIs must undertake the necessary preparations.”
Based on access to the information in the electronic record of the client’s Nepali citizenship certificate or national ID, the central bank has declared that the BFIs may employ electronic methods to identify and validate the customer in compliance with Rule 3 of the regulations.
Opening an account to receive payments under the government’s social security program does not require a national ID. However, when funds are taken out of these accounts, the BFIs must confirm the identification of their clients. Additionally, the BFIs have been requested to take the appropriate steps to validate mobile numbers in order to determine whether or not the cell phone was initially owned by their clients.
When the Ministry of Home Affairs notifies certain persons, groups, or organizations, the BFIs must create a new system to ensure that their account holders don’t engage in any financial transactions with the questionable parties that the ministry is keeping an eye on. The BFIs must freeze the accounts and notify the NRB’s Money Laundering Prevention Supervision Division within three days of the transaction date, assuming that any such transactions can be tracked down.
Additionally, the NRB has ordered the BFIs to classify their clients if they are senior government and international organization officials. High-ranking officials’ personal information must be retained by the BFIs for ten years following their retirement. The BFIs must use this measure to verify if their clients have regular interaction with such well-known individuals. The central bank has requested that the BFIs update their records by Tuesday in this regard.
The BFIs must additionally monitor financial transactions based on risk assessment, under the unified directives. Monitoring transactions made by those connected to corruption charges, tax evasion, human trafficking, casino owners, bullion merchants, real estate traders, cooperative accounts, and others must remain their top concern.
The BFIs will be required to notify the NRB’s Financial Information Unit of any questionable financial transactions. To keep an eye on these transactions, the BFIs will need to keep a distinct unit.
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