Mobile Wallets Can Now Impose Sanctions on Money Laundering and Terrorism Suspects

Kathmandu: Payment service providers (PSPs) can now impose financial sanctions on individuals or entities involved in money laundering and terrorist activities. Nepal Rastra Bank has issued the Guidelines on Targeted Financial Sanctions for Payment Service Providers, 2082 to implement this provision.

According to the central bank, the guidelines are in line with the Money Laundering Prevention Regulations, 2081. This move is considered a key step in Nepal’s efforts to get off the grey list of the Financial Action Task Force (FATF), an international body against money laundering.

Under the guidelines, PSPs must immediately freeze funds or accounts in mobile wallets belonging to individuals or entities on the suspicious or banned list. Rastra Bank has authorized wallet companies to impose two main types of sanctions:

• Asset freezing: Funds owned or controlled by restricted persons or entities cannot be moved, converted, exchanged, or spent.

• Prohibition on funds and services: No wallet access, transactions, or digital financial services can be provided to restricted persons or entities.

The guidelines clarify that these restrictions must apply to individuals, groups, or entities listed as terrorists or restricted by the Ministry of Home Affairs, as well as those on the United Nations Security Council’s consolidated restricted list.

PSPs are required to continuously monitor these lists and verify customer details daily, either manually or through automated systems. For this, they must subscribe to the UN list, register in the automated information system, and use the Ministry of Home Affairs’ targeted financial sanctions portal.

If a customer matches the restricted list, their account must be frozen immediately without prior notice. The PSP must then report the action to the Financial Information Unit of the central bank within three days. The central bank will forward the information to the Money Laundering Investigation Department and the Revenue Investigation Department under the Office of the Prime Minister and Council of Ministers, also within three days. The sanctions can remain in place indefinitely.

The guidelines also set strict penalties for non-compliance. PSPs that fail to follow the directive face actions ranging from warnings to fines between Rs 1 million and Rs 2 million, and even license cancellation.

For essential expenses such as food, health, and education, a restricted person can apply to the Ministry of Home Affairs for limited access to frozen assets. Currently, PSPs operating in Nepal include IME Pay, Khalti, eSewa, CellPay, CGPay, and Moru.

पछिल्लो अध्यावधिक: साउन २९, २०८२ १७:५७

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