Money Laundering Prevention Act 2064

Chapter-4 Financial Information Unit

Section 10: Function, Responsibilities and Powers of Financial Information Unit
1) In addition to other functions, responsibilities and powers mentioned anywhere in the Act, the Financial Information Unit shall have the following functions, responsibilities and powers:
(a) To receive threshold transaction report as per this Act,
(b) To receive suspicious transaction reports as per this Act,
(c) To receive the report of currency and Business Network International as per this Act,
(d) To receive other relevant information in accordance with the provision of this Act,
(e) To analyse suspicious transaction reports, including others,
(f) To disseminate, spontaneously and upon request, analysis and related information to the Department or other investigation agency if it suspects money laundering, terrorist financing, or other offence in its analysis pursuant to (e),
(g) To provide training on
Money Laundering or Terrorist Financing
to its own staff, regulator, reporting entity and relevant government agencies having liability to perform under this Act,
(h) To provide feedback and guidance in relation to, including the detection of suspicious activity, suspicious transaction reports or information to the reporting entity or concerned agency,
(i) To prepare and submit an annual report on its activities, including the money laundering and terrorist financing typologies, techniques, methods and trends of offences, to the Government of Nepal through Rastra Bank,
(j) To assist in the supervision of
Reporting Entities
in coordination with the Regulator as per necessity so as to know whether
Reporting Entities
have developed mechanisms to identify suspicious activity and reported or provide feedback on supervision report,
(k) To conclude a memorandum of understanding with foreign counterparts in order to exchange information upon reciprocity,
(l) To carry out other functions as prescribed.
2) The Financial Information Unit may request any relevant information or cooperation needed to carry out its duties with a foreign counterpart that performs similar functions, or it may spontaneously or, upon request, share its information or otherwise cooperate with such foreign counterpart.
3) It shall abide by the terms and conditions mentioned by its foreign counterpart in accordance with sub-section (2)  in relation to the information or cooperation received by it.
4) The Financial Information Unit shall, when providing information and assistance to an entity of a similar nature in a country pursuant to sub-section (2), also specify the conditions as may be prescribed in relation to the use of such information or assistance.
5) The provisions relating to confidentiality under section 10B shall also apply to information received from an entity of a country acting in accordance with sub-section (2) of the same nature.
6) The Financial Information Unit, in fulfilling its functions, responsibilities and powers pursuant to this section, may conduct the following:
(a) Request and obtain necessary additional documents, records, details or information from reporting entity,
(b) Request and obtain administrative, financial or law enforcement documents, records, details or information or commercial database remained in or with concerned agency, regulator or public institution.
7) The Financial Information Unit may impose a fine of up to one crore rupees for not reporting suspicious transactions, or for not complying with the orders and conditions given pursuant to this Act,
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or for not providing documents or information ordered to be submitted, or for violating the confidentiality of information regarding transactions pursuant to section 10A.
8) The Financial Information Unit shall, when imposing a fine on an indicting institution pursuant to subsection (7), give the relevant indicting institution a reasonable opportunity to submit its explanation.
9) An institution which is not satisfied with the penalty imposed by the Financial Information Unit pursuant to sub-section (7) may prefer an appeal before the High Court concerned within thirty-five days.
10) If the Financial Information Unit imposes a penalty in accordance with subsection (7) on an indicting institution, it shall provide the information to the regulatory body within seven days.
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Amendments to the Prevention of Money Laundering and Promotion of Business Environment Act, 2080.