Kathmandu. Nepal Rastra Bank (NRB) has taken action against Muktinath Bikas Bank, Garima Bikas Bank and Reliance Finance for violating the Anti-Money Laundering (AML) Act and Integrated Directives.
According to the second quarter supervision report of the fiscal year 2080/81 made public by the Department of Bank Supervision (DOB), Muktinath Bikas Bank has been fined Rs 1 million in cash while directors and chief executive officers (CEOs) of Garima Bikas Bank and Reliance Finance have been alerted.
According to the NRB, Muktinath Bikas Bank has been fined Rs 1 million as per the Integrated Money Laundering Directive, 2080 BS for not establishing a mechanism to identify the genuine owner and not implementing the provisions related to continuous due diligence regarding customers.
Similarly, Director of Garima Bikas Bank, Dr. According to the NRB, the amount collected for the purpose of establishing an insurance company was deposited in the joint account of Ananda Prasad Shrestha and others and the necessary monitoring and risk control procedures were not followed effectively. The board of directors and CEOs has been warned that the provisions related to corporate governance and conduct of directors have been found weak and the CEO has not carried out adequate monitoring.
Similarly, the NRB has warned the directors and CEO of Reliance Finance after it was found that business transactions were carried out from joint accounts related to Kush Prasad Malla, director of Reliance Finance, and other individuals, the customer identification and customer due diligence (CDD) of those accounts were not updated on time, and institutional governance and monitoring were weak.
Nepal Rastra Bank (NRB) has directed the agencies concerned to effectively implement anti-money laundering laws, customer identification, transaction monitoring and corporate governance.
