Now employees provident fund, citizen investment fund, social security fund and higher purchase loan giving institutions also have to effectively implement the provisions related to prevention of money laundering. Nepal Rastra Bank has issued a circular and instructed those organizations not to do business with persons and organizations that are on the United Nations' restricted list, and to freeze their accounts if they have done business before.

Rastra Bank has already issued directives regarding prevention of money laundering and financial investment in terrorist activities for employees' provident fund, citizen's investment fund and hire purchase loan companies. However, no such directive was issued for Social Security Fund.

At present, the National Bank has issued revised instructions regarding the prevention of financial investment in money laundering and terrorist activities for employees' provident fund, citizen's investment fund and companies providing hire purchase loans. Social Security Fund is also included in the same directive.

Now, the Rastra Bank has asked all the mentioned organizations not to do business with the persons, organizations, groups, organizations, etc. that are on the United Nations restricted list, and to stop the money in their accounts in the previous transactions. "The list of persons, groups or organizations provided by the Ministry of Home Affairs through various means, or whether there is any transaction with any person, group or organization related to it, should be checked regularly and acted upon according to the order," said the instructions of the National Bank.

If the account or any other funds of the listed person, group or organization or the person associated with it is with the organization, it should be immediately suspended and informed to the Anti Money Laundering Supervision Division of this bank within 3 days in the format according to schedule 10 of the regulation and a copy of the same should also be provided to the financial information unit.

Likewise, the National Bank has said to identify and confirm the customer based on the details in the electronic record of the citizenship certificate or national identity card. Now those organizations have to classify the high-ranking people also based on the prescribed criteria.

according to which, the directive says to classify high-ranking people who are in office, high-ranking people who are not in office, foreign high-ranking people from neighboring or nearby countries, other foreign high-ranking people and high-ranking people of international organizations. The guidelines also state that the institution should ascertain whether its client is/is not a family or close relation of a high-ranking person.

According to the new arrangement, the organization will have to set up a separate anti-money laundering department/unit with a chief compliance officer (Compliance Officer) at the managerial level. "When appointing an enforcement officer, it must be ensured that the person is not a family member or a close relative of an official of the relevant regulatory body or a high management employee," the directive says. (FATF) negative list is included in the 'grey list'. Nepal has been included in the "grey list" due to the neglect of the political leadership in the investigation and implementation of laws related to prevention of money laundering. The second General Assembly meeting of FATF held in Paris, France last Friday evening decided to place Nepal in the "grey list".