SEBON Enforces New AML and Counter-Terrorist Financing Directive

The Securities Board of Nepal (SEBON) has brought into effect the Directive on Prevention of Money Laundering and Financing of Terrorist Activities, 2083, aimed at strengthening and systematizing the operations of reporting entities associated with Nepal’s securities market.

The directive came into force on Ashwin 30, 2083, in accordance with the provisions of the Asset (Money Laundering) Prevention Act, 2064.

According to SEBON, the new directive has been introduced to further regulate and systematize the activities of reporting entities involved in the securities market in order to prevent offences related to money laundering and terrorist financing.

The directive provides an updated framework for relevant institutions to carry out their responsibilities in line with the country’s legal provisions on preventing illicit financial activities.

SEBON said the measure is intended to strengthen compliance and ensure that institutions operating within the securities market maintain appropriate systems and procedures to help prevent the misuse of the financial system for money laundering and terrorist financing.

SEBON has also formally communicated with all concerned reporting entities regarding the implementation of the new directive.

The regulator has urged the relevant institutions to take the necessary measures to ensure effective implementation of the provisions contained in the directive.

SEBON has also made the Directive on Prevention of Money Laundering and Financing of Terrorist Activities, 2083 available on its official website for stakeholders and other interested parties.