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Financial Information Unit

FIU-Nepal

  
Table of Content
    • Definitions
    • Egmont Group
    • History
    • Core Functions
    • Roles & Power
Egmont Group of FIUs 
Origin:
 
The Egmont Group is a united body of 159 Financial  Intelligence Units (FIUs).

The goal of the Egmont Group is to provide a forum for FIUs from around the world to improve cooperation in the fight against money laundering and financing of terrorism and to foster the implementation of domestic programs in this field.

FIU-Nepal is a member of Egmont Group.


FIU-NEPAL ( Financial Information Unit)

History:

The FIU was established on 21 April, 2008 under the section 9 of the Assets (Money) Laundering Prevention Act (ALPA), 2008 with the Nepal Rastra Bank (the central bank) as an independent unit.

However FIU-Nepal became member of Egmont Group on June 10, 2015, as a member of the Egmont Group

Definitions: FIU-Nepal is Nepal’s financial intelligence unit.

It is a central, national agency responsible for receiving, processing, analyzing and disseminating financial information and intelligence on suspected money laundering and terrorist financing activities to the Investigation Department, other relevant law enforcement agencies and foreign FIUs.
 
Financial intelligence organizations (FIUs) which collect information on suspicious or unusual financial activity from the financial industry and other entities or professions required to report transactions suspicious of being money laundering or terrorism financing.

FIUs are normally not law enforcement agencies, their mission being to process and analyze the information received.

If sufficient evidence of unlawful activity is found, the matter is passed to the public prosecution.



FIU-NEPAL ( Core Functions )
 FIUs are generally conceived to perform the following three basic functions :-  


Core Functions in details : FIU-NEPAL

1. Collections
To  act  as  a  centralized  repository  of  reports  of  suspicious  transactions  and  other  disclosures. The premise is that centralized information ensures greater efficiency in the gathering, processing and analysis of information.

2. Analysis 
To  act  as  a  centralized  repository  of  reports  of  suspicious  transactions  and  other  disclosures. The premise is that centralized information ensures greater efficiency in the gathering, processing and analysis of information.

3. Disseminating
FIU requires that it should be mandated to share information  with  domestic  regulatory  and  judicial  authorities  as  well  as  with international  authorities  involved  in  the  detection,  prevention  and  prosecution  of  money laundering and terrorist financing. 

Roles and Power : FIU-NEPAL

Receive  and  collect  reports  on  suspicious  and  prescribed  threshold  financial transactions  and  other  information  relevant  to  ML  and  terrorist  activities financing from :
  • Government agencies,     
  • Financial institutions and 
  • Non-financial institutions.
Analyze and assess the information received from reporting agencies.

Provide suspicious and other relevant information to the investigation department and others relevant.

Direct the banks, financial institutions and non financial institutions regarding the reporting.

Ensure compliance by reporting entities with their obligations under the act, rules and regulations.

Inspect transactions and records of bank, financial institution and non financial institution.

Manage training and awareness programs.

Penalize bank, financial institution and non financial institution in the failure of reporting compliance.
 
Used abbreviations Note :
FIU : Financial Information Unit / Financial  Intelligence Unit
NRB : Nepal Rastra Bank
EG  : Egmont Group
ML  : Money Laundering
FI  : Financial institutions



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