Kathmandu. The Nepal Insurance Authority (INSURANCE) has brought strict arrangements for insurance companies to comply with the provisions related to prevention of money laundering.
Issuing the Directive on Prevention of Money Laundering, Terrorist Activities and Financial Investment in The Manufacture or Expansion of Weapons of Mass Destruction, 2082, the AUTHORITY has brought a provision of fine of up to Rs 50 million to cancellation of license for insurers who do not comply with the provisions related to prevention of money laundering. The AUTHORITY has issued this directive in exercise of the powers provided in the Prevention of Money Laundering Act, 2064 and insurance act, 2079.
The Insurance Authority had approved this directive on August 14. The directive will come into effect from the 31st day from the approved date.
According to the provisions of the Act, the AUTHORITY has made provisions ranging from alerting the insurance companies to cancel the license along with cash penalty due to non-compliance of the provisions contained in the directive and the systemic impact that may arise from the bar. The cash penalty ranges from Rs 1 million to Rs 50 million depending on the non-compliance rules.
Similarly, according to this directive, the AUTHORITY can take action against the insurers who do not follow the rules to the extent of prohibiting the issuance of any or all insurance policies.
Types of action in non-compliant arrangements
panishment
