Banks may be exposed to transaction that attempts to disguise illicit source of funds derived from illegal activities such as, fraud, corruption, tax evasion, organized crime etc. As the first stage of money laundering, placement occurs at banks, it is vital for banks to be extra vigilant while performing financial transactions. Hence, to prevent financial crime from the bank, the Bank has arranged for the prerequisites.
Nepal Investment Bank Ltd. has a separate AML Unit under Compliance Department that has a policy to prevent the money laundering and terrorist financing. Its purpose is to apply international and local legislation and recommendations for preventing the Bank being used as a channel for money laundering or terrorism.
The policy is a supplement to the Bank’s other instructions concerning customers, business, employees and IT. It aims to familiarize the staff of the Bank with the laws, rules and directions from regulatory authorities and internal instructions relating to the prevention of money laundering and terrorism. The policy helps employees to detect, investigate, report and not become involved in transactions which may be related to money laundering or financing of terrorism.
The policy points out that employee have individual personal responsibility, including the following issues:
Documents necessary for opening an account;
Document / information verification;
Monitoring the transaction to verify the alignment to information provided;
Routines for updating information.
The Bank has Anti-Money Laundering Committee with two Non-Executive Directors, Chief Risk Officer and Chief Compliance Officer. The Committee may invite a specialist, should the need arise. The Bank has appointed Branch Compliance Officers at all branches with overall responsibility to comply with the policies, procedures and guidelines. The Bank practices a far-reaching delegation of responsibility for customers through disclosures, regarding personal and business information, of which, the staff at branches and other units, have developed skills in ‘Know Your Customer’ and ‘Know Your Business’.
As we implement our future strategy, upholding the highest standards of conduct is a priority for the Bank. The policy shall be revised on annual basis incorporating the latest developments on the subject and instructions from regulatory bodies.