Money Laundering Prevention Act 2064

Chapter-3 Provision On Customer Identification And Transactions

Section 7P: Responsibilities of Reporting Entity
1) It is the responsibility of the Reporting Entity to develop and implement
anti-money laundering and combating the financing of terrorism
Policy and Procedures compatible with its scope, geographic coverage, size of business, customer, transaction and risks for the prevention of money laundering and financing of terrorism and implementation of this Act, rules and directives thereunder.
2) Such Policies and Procedures shall include in accordance with sub-section (1) the following:
(a) Internal policies, procedures and controls relating to relating to customer due diligence measures, information on transactions, verification, record keeping, monitoring, reporting,
(b) Ongoing monitoring,
(c) Arrangement to implement obligations as per this Act, rules and directives thereunder,
(d) Adequate screening procedures to ensure high standards when hiring employees,
(e) Ongoing and refreshment training for officers and employees,
(f) Independent and effective measures to review, verify and update and make compliance,
(g) Measures for detection and information of suspicious transactions,
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(g1) The exchange of information with the institutions concerned under sections 7J, 7L, and 7M,
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(g2) The provision of risk management concerning the customer and the use of the business relationship and compliance with the conditions,
(h) Other measures to fulfil the obligations as per this Act, rules and directives
(i) Other measures as prescribed by the Regulator.
3) Reporting entities shall have to appoint a compliance officer at the management level to comply with the obligation pursuant to the provision of this Act or other rules and directives issued in accordance with this Act.
4) The reporting entity shall ensure the following powers and necessary resources for the compliance officer in accordance with sub-section (3):
(a) Access to any documents, records, registers and accounts necessary for the performance of his tasks,
(b) Power to request and obtain any information, notice, details or document from any employee of the reporting entity,
(c) Other functions necessary to implement the Act, rules, and directives, and
(d) Other responsibilities as prescribed by the Regulator.
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5) The indicator institution shall update and submit the risk-based institutional policy, procedures, and action plan to the regulatory body at least once a year and not more than once as required, based on changes in the existing laws, risk assessment, changes in business and technology, changes in the way of committing crimes, and trends.
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6) The indicting agency shall make arrangements for the identification of the customer to be carried out under this Act, the monitoring of the transaction, the identification of the transaction or suspicious transaction beyond the prescribed limit and its basis, risk assessment and management, the implementation of policies and procedures and other activities to be carried out under this Act, including through electronic means.
Provided that the regulatory body may, based on the risk assessment, exempt any work carried out under this sub-section of the indicator institution in the low-risk areas from being carried out by electronic means.
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Added by Act, 2080 to amend certain Acts relating to Prevention of Money Laundering and Promotion of Business Environment.