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       Suspicious Transaction Report               STR - Nepal Rastra Bank       Content What is Suspicious Transaction Report ( STR) What are the Characteristics of STR? List out the Indicators of Suspicious Transactions What is the procedure to report STR in Nepal?   Definitions: Suspicious transaction refers to any transaction (including attempted or proposed), regardless of the amount that : Appears unusual /illegal Has no clear economic purpose Does not commensurate with the customer’s profile or business activities Involves proceeds from an unlawful activity. Indicates that the customer is involved in money laundering or terrorism financing activities.   Characteristics of STR : General Characteristics of Suspicious Financial Transactions : Transactions having unclear economical and business target. Transactions conducted in relatively large amount cash and/o...

What is Cheque?     Definition: A Cheque is an instrument in writing containing an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay on demand a certain sum of money only to or to the order of certain person or to the bearer of instrument. Cheques are a type of bill of exchange and were developed as a way to make payments without the need to carry large amounts of money. Types of Cheques     There are mainly three important types of cheques-     Bearer Cheque     Order cheque     Cross Cheque Bearer Cheque : Bearer cheques are the cheques which withdrawn to the cheque's owner. These types of cheques normally used for a cash transaction. You can find this word on your cheque leaf, if you do not strike this word it becomes a bearer cheque. Means a person holding the cheque can withdraw the amount (only if it is signed). Order Cheque : Order...

Appointment of the Governor in Nepal: Here are the procedure in order to be appoint  the Governor  :- 1.Government of Nepal, the Council of Minister shall appoint Governor on the basis of the recommendation of the Recommendation on Committee formed pursuant to sub-section(2). 2. Government of Nepal, the Council of Minister shall for the appointment of Governor, form a recommendation Committee as following -     (a) Minister of Finance                   - Chairperson     (b) One person from among the former Governors       - Member     (c) One person designated by Government of Nepal from among the persons renowned in the fields of Economical Law           - Member While making recommendation for the appointment of Governor, the committee formed pursuant to sub-section(2), shall recommend to Governme...

What is KYC? KYC Stands for ‘Know your customer’. The objective of KYC/AML guidelines is to prevent banks from being used by criminal elements for money laundering or terrorist financing activities. KYC procedures also enable banks to know/understand their customers and their financial dealings better which in turn help them manage their risks prudently. The objective of obtaining KYC information is to enable the Bank to have true identification of its customers. Purpose and Objective of KYC ?   Ensuring that only legitimate and bonafide customers are accepted Ensuring that customers are properly identified and that they understand the risks they may pose. Verifying the identity of customers using reliable and independent documentation Monitoring customer accounts and transactions to prevent or detect illegal activities Implementing processes to effectively manage the risks posed by customers trying to misuse facilities. Mandate documents for KYC? The KYC guidelines of NRB (...

                                             goAML   Definitions goAML – Financial Intelligence Unit Reporting Tool. goAML is a standard application (software system) developed by the United Nations Office on Drugs and Crime (UNODC) for Financial Intelligence Units worldwide to counter Terrorist Financing and Money Laundering.   UNODC: United Nations Office of Drugs and Crime   goAML goAML – NBR Implementation Nepal Rastra Bank (NRB) has implemented goAML system for banks and financial institutions (BFIs). The system are  in operation from Magh 01, 2076. All BFIs are required to submit reports and statements from goAML medium. The primary goal behind goAML implementation is to identify Suspicious transactions and to control Money Laundering. The Financial Information Unit, an independent body headed by a central bank. ...

What is Banking Offence? Definitions: Any unauthorized activities that make losses to the banking system is known as Banking Offence. It is also known as banking fraud. Banking fraud is the use of potentially illegal means to obtain money, assets and other property owned by financial institutions. Banking offence activities? Violation of banking norms and rules Wrong valuation Misuse of banking means, property and resources Unauthorized withdrawal and payment Unauthorized act against the interest and right of depositors and shareholders Misuse of authority Misuse of credit Banking Offence activities listed by BOP Act 2064 To control these activities Banking Offense and Punishment Act is formulated in Nepal.

Remittance in Nepal and Letter of Credit    Content:-   1.What is Remittance?  2.Main four parties?  3.Types and Benefits?  4.Modes and instruments?  5.Some data 6.Letter of Credit ( LC)  6.Concept of LC 8.Purpose of LC  7.Features of LC  8.Parties involved  9.Types of LC  10.Summary of LC Definitions:  A Remittance is a transfer of money by a foreign workers to an individual in his/her home country. Remittance is a non-funded and less risky business where there is no physical movement of money. There are at least 4 parties are involved while remitting the fund.             Main four parties of Remittance   Types of Remittance: Following below are  the types of Remittance: National International Inward Outward Formal (using Bank and Financial Institutions) Illegal (by means of Hundi, Individual person) Top recipient countries of remittances (in ...