Money Laundering Prevention Act 2064

Chapter-3A Regulation and Supervision of Reporting Entities

Section 7U: Functions, Responsibilities and Powers of the Regulator
1) The functions, responsibilities and powers of the Regulator shall be as follows for the purpose of this Act:
(a) To undertake a risk assessment to identify, evaluate, and monitor risk in the reporting entity and its sector periodically or as per the to manage risks effectively necessity and adopt adequate measures to effectively manage risks,
(b) To require the reporting entity to undertake a risk assessment to identify, evaluate, and monitor risk within the entity periodically or as per necessity and adopt adequate measures to manage risks effectively,
(c) To implement or cause to implement this Act and the Rules and directives issued thereunder,
(d) To impose mandatory conditions to comply with the provisions of this Act for a person or institution while registering, licensing or issuing permissions or licenses for reporting entity or in the course of business,
(e)To conduct on-site inspection, off-site supervision and monitoring of reporting entity in order to ascertain the compliance of the provisions of this Act and rules, directives, or orders issued thereunder,
(f) To require
Reporting Entities
to apply the
anti-money laundering and combating  financing of terrorism
measures under Core Principles for prudential supervision,
(g) To carry out on-site inspection, off-site supervision or monitoring as required by this Act or the regulations made under this Act or the guidelines issued or the indicting institution in respect of non-compliance with the provisions of the instructions or orders given,
(h) To issue directives as per sub-section (2) and determine additional measures to
Reporting Entities
for complying with their responsibilities mentioned in Chapter 3,
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(i) To conduct comprehensive monitoring of the risk assessment and
Enhanced customer due diligence
carried out by the
Reporting Entities
in relation to the customer or transactions belonging to a country internationally identified as a non or partially compliant of
anti-money laundering and combating  financing of terrorism
standards,
(j) To order the reporting entity to make any documents, books, records or details and any other information available for the compliance of this Act, and rules and directives or order issued thereunder,
(k) To provide necessary assistance in the investigation of criminal offences,
(l) To make a special assessment of the reporting entity about its mechanisms developed for the detection of suspicious transactions, its evaluation, reporting management on
Money Laundering
, T
errorist Financing
pursuant to section 7S. or in other activities suspected or having reasonable grounds to suspect and their effective implementation,
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(m) If the indicting institution does not submit a report on suspicious transactions or if suspicious transactions or actions are found in the indicting institution, it will be reported to the Financial Information Unit, and if it is found that there is a defective action, it will be sent in writing to the authorised officer for investigation,
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(m1) To regularly publish on its website information on the classifications issued by the relevant intergovernmental international organisation in respect of compliance with the following years, including the prevention of financial investment in the creation or expansion of assets, terrorist acts or weapons of mass destruction,
(n) To train or cause to conduct training programs for the RE on
anti-money laundering and combating  financing of terrorism,
(o) To carry out other functions as prescribed.
2) The Regulator may issue necessary orders, directives, or guidelines to the reporting entity to implement or cause to implement the tasks under this Act and the provisions of international standards on
anti-money laundering and combating the financing of terrorism
.
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2A) The regulatory body shall also exercise the functions, duties and powers pursuant to sub-sections (1) or (2) in relation to the prevention of financial investment in the manufacture and expansion of weapons of mass destruction.
3) It may enter into cooperation and sharing arrangements with domestic or Foreign Regulators regarding the regulation and supervision of reporting entities operating under the same
group and for the exchange of relevant supervisory information.
4) Financial Regulator may make necessary arrangements with domestic or similar Foreign Regulators regarding the system of regulation and supervision and exchange of regulatory and
supervisory information, including other cooperation for anti-money laundering and combating the financing of terrorism systems.
5) Other arrangements regarding the cooperation exchange with the regulatory body will be as prescribed.
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Amended by to amend certain Acts relating to Prevention of Money Laundering and Promotion of Business Environment Act, 2080.
2 Added by
to amend certain Acts relating to Prevention of Money Laundering and Promotion of Business Environment Act, 2080.