KATHMANDU: Nepal Rastra Bank (NRB) has mandated the use of national identity cards for opening accounts in microfinance financial institutions starting January 14.
The move is aimed at bolstering customer identification and verification processes to align with anti-money laundering regulations.
In a recent directive, the central bank instructed microfinance institutions to verify national identity card details using electronic records before approving account openings. This requirement is in accordance with the Money Laundering Prevention Act, 2008, and the Money Laundering Prevention Regulations, 2017, which emphasize stricter customer identification standards.
The directive also outlines that accounts can be opened or business relationships established through electronic means, provided institutions implement detailed policies and procedures for customer identification.
These procedures must ensure the authenticity of documents submitted electronically, use reliable systems to gather accurate information, and include mechanisms for regular data verification.
NRB has also emphasized the need for financial institutions to adopt adequate measures to safeguard against risks and misuse associated with electronic transactions.
By January 14, microfinance institutions are required to update the national identity card details of all high-ranking account holders to ensure compliance.
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