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NRB tells banks to close accounts without KYC-verification

Federal bank Nepal Rastra Bank has told banks to close accounts without KYC-Verification. Releasing a notice, the central bank directed licensed banks to discontinue customers’ accounts who can’t be identified with their Know Your Customer details.

The regulatory bank issued the directive as per the amendment into directive no. 19 from its unified directive, 2078. The directive is aimed at Class A, Class B, and Class C banks.

The directive also states that banks should establish procedures to identify their customers and their geolocation. Likewise, banks can also open their customers’ accounts electronically.

Also read: Implement Interoperability: NRB to Digital Payment Service Providers

“Such a procedure must include necessary documents and details that can be received electronically, a reliable electronic means to obtain correct documents and details, and also a method to be determined regularly,” said the directive.

The regulator has also called on banks to adopt effectivee measures against possible risks, and misuse of electronic transactions.

The directive also tells the bank to submit reports to the Information Unit on accounts if a bank finds it suspicious and necessary.  

Check out: NRB Forbids Money Transfer from a Wallet to a Bank Account

Following the directive, bank accounts without KYC verification might cease to function. This applies to the accounts which are set up for business purposes. As for the new bank accounts, they must ensure they are identified by the bank through their KYC details.

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