What insurance transactions exceed the limit? The insurer must submit the report as soon as possible.

Kathmandu. Nepal Insurance Authority (NEA) has set a limit on insurance transactions. The AUTHORITY has issued directives related to prevention of money laundering, terrorist activities and financial investment in the manufacture or expansion of weapons of mass destruction, 2082 BS. If the insurance transaction exceeds the prescribed limit, the insurer will have to immediately inform the Financial Information Unit of the AUTHORITY.

According to the directive, the financial information unit will have to enter the details of the transaction of every customer who has made a one-time or repeated insurance related transaction beyond the prescribed limit in the GoAML system through electronic software in the format prescribed by the Authority as soon as possible or within a maximum of 15 days from the date of the transaction.

To submit reports of such transactions

• If you purchase a non-life insurance policy that costs Rs 3 00,000 or more in a year,
• If you purchase a life insurance policy that costs Rs 1 00,000 or more in a year,
• If the life insurer takes a loan of Rs 1 crore or more under the terms of the policy,
• If the claim payment amount per customer under life insurance is Rs 1 crore or more,

Under non-life insurance TAG_OPEN_li_35, if the institutional customer has a transaction of Rs 30 million or more and individual customers have a turnover of Rs 10 million or more.

As per the

• directive, other arrangements relating to the boundary transaction details will be as per the guidance issued by the unit.

Special attention to specific transactions

In addition to the issues mentioned in Section 7D of the Prevention of Money Laundering Act, 2064, the insurer should develop and implement a system that pays special attention to specific insurance transactions.

These are topics of special attention

• An insurance policy with a single insurance fee of more than Rs 1 lakh,
• Surrender, revival, cancellation, loan granted and condition modified policies with insurance cover of more than Rs 10 lakh,
• Transactions with foreign customers, unidentified transactions and
• Specific transactions identified by the insurer itself based on risk.