AML rule is a requirement, not a choice: Governor Nepal

Published On: January 28, 2017 12:00 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 28: Anti-Money Laundering (AML) rules are not a choice but a requirement for banks' own profitability and sustainability, according to Nepal Rastra Bank (NRB) Governor Chiranjivi Nepal.

Inaugurating the 2nd episode of the annual Anti-Money Laundering Conference in Kathmandu on Friday, organized by National Banking Institute Ltd (NBI), Nepal urged the banking community to follow prudent banking practices and adopt zero tolerance for compliance.

More than 150 banking professionals, including CEOs of various banks, were present in the conference. 

Speaking at the conference, Anil K Shah, president of Nepal Bankers' Association (NBA), said it was high time banks invested on development of human capital and technology.

Highlighting the importance of AML, Shah added said that it should be in the DNA of every employee of banks.

Likewise, Ajay Shrestha, Chairman of NBI and the CEO of Bank of Kathmandu Lumbini Ltd, added that the conference has come in the right time when the banks are facing liquidity and hence looking for deposits. Such deposits should be clean in nature, he added.

The inaugural session concluded with the release of Nepal's first AML/CFT Survey Report which was conducted by NBI in coordination with Fintelekt in December 2016.  

At the program, Sirish Pathak, CEO of Fintelekt, made a short presentation on the survey report . 

The inaugural session was followed by deliberations of local and foreign speakers and industry experts Sean Norris, Managing Director, APAC, Accuity; Jairam Manglani, Country Head- Financial Crime, Compliance & Principal Officer, Standard Chartered Bank, India;  Debmalya Maitra, Advisory Board Member, Fintelekt; and Hari Nepal Deputy Director of FIU, Nepal Rastra Bank.

The very informative sessions covering various aspects of AML/CFT were further followed by a panel discussion comprising of various industry experts as the panelist, according to NBI.

KYC form to be shortened
Nepal Rastra Bank (NRB) Governor Chiranjivi Nepal has said that the central bank was preparing to make Know Your Customer (KYC) form more customer-friendly.

Addressing the 2nd Anti-Money Laundering Conference in Kathmandu on Friday, Nepal said: “We are receiving complaints that KYCs are too long and difficult to fill up. The central bank is planning to simplify and shorten it,” he added. 

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