Nepal Insurance Authority Prepares New Anti-Money Laundering Guideline to Support Grey List Removal

Kathmandu — The Nepal Insurance Authority has begun drafting a new guideline on money laundering as part of the national effort to remove Nepal from the Financial Action Task Force (FATF) grey list. The move follows a 9-point directive issued by the Prime Minister’s Office aimed at strengthening the country’s compliance with international anti-money laundering (AML) standards.

According to the Authority, the forthcoming guideline will align with the existing Money Laundering Prevention Act and is designed to tighten regulatory oversight within the insurance sector. The regulatory body has stated that the guideline will play a critical role in reinforcing transparency and accountability in insurance transactions.

Under the proposed changes, insurance companies will be mandated to implement robust AML policies at the time of policy issuance. The guideline will also introduce stricter enforcement mechanisms, granting the Authority increased power to act against non-compliance

One of the key provisions includes the introduction of a mandatory reporting timeline for insurance companies to submit reports to the Financial Information Unit (FIU). Failure to report within the stipulated deadline may lead to regulatory action.

Additionally, the guideline will emphasize the identification and verification of natural persons and the ultimate beneficiaries of insurance policies, further closing gaps that could be exploited for money laundering activities.