Financial Information Unit (FIU)-Nepal is a national agency responsible for receiving, processing, analyzing and disseminating financial information and intelligence on suspected money laundering and terrorist financing activities to the relevant law enforcement/investigative agencies and foreign FIUs. It was established on 21 April, 2008 under the section 9 of the Assets (Money) Laundering Prevention Act, 2008 within the Nepal Rastra Bank (the central bank) as an independent unit.
The FIU-Nepal is also assigned to function as the secretariat of the National Coordination Committee (NCC) constituted as a standing committee under the coordination of secretary of Office of Prime Minister and Council of Ministers, including secretaries of Ministry of Finance, Ministry of Law, Justice and Parliamentary Affairs, Ministry of Home Affairs, Ministry of Foreign Affairs, Commission for the Investigation of Abuse of Authority (CIAA), Deputy Attorney General of Office of Attorney General, Deputy Governor of Nepal Rastra Bank and Inspector General of Police (IGP) of Nepal Police as members. The Head of FIU is the Secretary of the committee.
The legislation, in regards to AML/CFT, mandates the FIU to:
|•||receive and collect reports on suspicious and prescribed threshold financial transactions and other information relevant to money laundering and terrorist activities financing from government agencies, financial institutions and non-financial institutions;|
|•||analyze and assess the information received from reporting entities and inspect transactions and records of bank, financial institution and non financial institution;|
|•||provide suspicious and other relevant information to the Investigation Department and others relevant;|
|•||guide the banks, financial institutions and non financial institutions regarding the reporting;|
|•||ensure compliance by reporting entities with their obligations under the Act, rules and regulations;|
|•||manage training and awareness programs;|
|•||impose fine bank, financial institution and non financial institution in the failure of reporting compliance;;|
|•||develop information exchange mechanism with other FIUs or related international institution by entering into Memorandum of Understanding or membership.;|