Suspicious Transaction Report - STR - NEPAL RASTRA BANK

      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/or conducted repeatedly and unnaturally.
• Transactions conducted differently from that of usually and normally conducted by the relevant customer.
• Huge, complex and usual transaction.

Indicators of Suspicious Transactions:

 

A transaction may have certain ‘red flags’ that give rise to a suspicions that it is linked to criminal activity or criminals.

The  presence  of one  or  more  indicators  may  not  be  evidence  of  criminal  activity;  it  may  however  raise  a suspicion.

Suspicious Transaction categorized into the following 2 groups :-

• General Indicators
• Sector Specific Indicators

Procedure of reporting STR  in Nepal:

The STR submitted to FIU-Nepal should contain following supporting documents:
 

i. In case of Person
       -Updated KYC related documents
       -Account Statement (if available)
       -Summary suspicious transaction identified
       -Media news/reports and other relevant documents
ii. In case of Entity
       -Registration Certificate
       -PAN/VAT Certificate
       -Updated KYC related documents of Entity and its Director(s) and Signatory
       -Account Statement (if available)
       -Summary of suspicious transaction identified
      -Media news/reports and other relevant documents (if any)

Tags: 

#NepalBankingRules #BankingTaiyari #Bankinggyan #NepalBank #Aml #Sampatisudhikaran #Nepalsharemarket #bankingtaiyari #Nepalbankingrules #ipo