FIU-Nepal issues updated STR/SAR guidelines, adds AI and PEP Red Flags

KATHMANDU: The Financial Information Unit (FIU-Nepal) under Nepal Rastra Bank (NRB) has issued updated guidelines for identifying and reporting suspicious transactions and activities. The move aims to strengthen the country’s anti-money laundering (AML) framework.

The revised STR/SAR Guidelines, in line with the Anti-Money Laundering Act, 2064, provide practical guidance to reporting institutions for detecting and submitting suspicious transaction reports (STRs) and suspicious activity reports (SARs).

The updated guidelines introduce a structured classification of Red Flags into three categories: general, sector-specific, and predicate offence-related. Under the general category, Red Flags related to the use of artificial intelligence and the involvement of politically exposed persons (PEPs) have been added. Sector-specific additions include indicators for hire purchase companies and automobile selling companies.

FIU-Nepal has also clarified the required information, submission timelines, and procedures for STR/SAR filings. These updates are expected to enhance the quality of reports submitted and support the identification and investigation of financial crimes.