Securities Board's New Directive: Monitoring of Daily Share Transactions Above Rs 1 Million
The Securities Board of Nepal has issued the 'Anti-Money Laundering and Terrorist Financing Directive, 2083', introducing monitoring of daily share transactions of Rs 1 million or more. Reporting entities must maintain records of such transactions and provide details to the Financial Information Unit within 15 days. The directive also requires customer identification based on national identity cards.
The Securities Board of Nepal has decided to monitor investors conducting daily share transactions of Rs 1 million or more. According to the 'Anti-Money Laundering and Terrorist Financing Directive, 2083' issued by the board, strict monitoring will now be placed on such large-value share transactions.
Under the new arrangement, if anyone conducts daily share transactions of Rs 1 million or more, the concerned reporting entity must maintain records of such transactions. Additionally, they must provide details through the system prescribed by the Financial Information Unit within 15 days.
The directive states that separate records must be maintained for the amount, records, or accounts related to such transactions, and the source of funds used in the transaction must also be disclosed. The board believes this will facilitate monitoring of where the money used in share transactions came from, what the source is, and how it was used.
Likewise, the directive also arranges for customer identification based on national identity cards. For Nepali citizens, customer identity must be verified based on the national identity card before establishing a business relationship. Additionally, customer details, contact number, email, address, and photo must be verified as necessary.