NIA Chair Sharad Ojha Directs Insurers to Strengthen Anti-Money Laundering Measures
Kathmandu — Nepal Insurance Authority (NIA) Chairman Sharad Ojha has instructed all insurance companies to strengthen their internal mechanisms to combat money laundering and enhance financial transparency in the insurance sector.
Speaking at a capacity-building program organized by the Authority in Kathmandu, which brought together Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) implementation officers from various insurers, Chairman Ojha emphasized the urgent need for insurance companies to develop and implement effective policies, strategies, systems, and standards to counter money laundering risks.
He urged companies to revise and align their internal frameworks with the guidelines and directives issued by the Authority. He further highlighted that the nature and risks associated with insurance, microinsurance, and reinsurance may vary and therefore require precise and customized risk assessments.
Chairman Ojha pointed out that insurance companies must ensure the legitimacy of their clients’ financial sources before issuing policies. He stressed that financial risk assessments should be robust enough to verify whether the income source of the insured is genuine and whether they possess the financial capacity to hold the insurance. He also underscored the importance of verifying the legality of the insured assets.
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He noted that weak financial risk assessments could expose the insurance sector to misuse, and emphasized that closing loopholes for illicit money flow into the industry is critical for long-term safety and regulatory compliance.
Reaffirming the state’s commitment to combating financial crimes, Chairman Ojha stated that preventing money laundering is not only a national priority but also a key mandate of the Insurance Authority. He directed all insurers to improve their organizational structures in line with the prevailing legal provisions and adopt preventive measures to ensure they are not implicated in any money laundering-related issues.
Also speaking at the event, Sushildev Subedi, Executive Director of the Insurance Authority, said the program was designed to enhance the capacity of insurance companies in identifying and managing money laundering risks, while ensuring compliance with national and international standards.