Kathmandu. The Nepal Insurance Authority (INSURANCE) has issued directives to conduct mandatory training for basic shareholders, directors, employees and insurance intermediaries on prevention of money laundering and prevention of financial investment in terrorist activities.
NeA has made this provision in the guidelines related to prevention of money laundering and control of financial investment in terrorist activities. According to the guidelines, the insurer should carry out an institutional efficiency enhancement program with its basic shareholders, members of the board of directors, high management and employees as follows in order to make compliance of the Act, Rules and Directives effective:
- To conduct orientation programs to shareholders, board members and top management who own 1% or more of the paid-up capital of the organization about the seriousness of related issues
- Skill enhancement training program in the case of employees,
- Implementation Officer and other employees directly and regularly involved in the work of AML÷CFAT department or unit to participate in training on AML/CFT related subjects.
Similarly, the insurer has to develop necessary mechanisms for identification, monitoring and reporting of people related to financing in the control and expansion of terrorist acts and weapons of mass destruction.
In addition, the NRA has also directed to prepare and implement a ethics policy for the board of directors, executive chief, employees and insurance intermediaries and agents of the insurer.
According to the guidelines, the insurer has to update the records or details of the customer in the core insurance system or other electronic system of the insurer and submit it according to the rules of the regulations for the limits and suspicious transaction activity reports to be submitted to the Financial Information Unit and the report to be submitted to the AUTHORITY.
The insurer will have to make arrangements for internal audit and audit of the works done in accordance with the existing laws related to AML/CFT.
