Anti Money Laundering Policy

AML Policy

Download the pdf version of ANTI-MONEY LAUNDERING POLICY
of United Remit.

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Introduction

Money laundering is the attempt to conceal or disguise the nature, location, source, ownership, or
control of money. Money laundering involves three independent and often simultaneous steps:

  • Placement - Physically placing bulk cash proceeds.
  • Layering - Separating the proceeds of criminal activity from their origins through layers of complex financial transactions.
  • Integration - Providing an apparently legitimate explanation for the illicit proceeds.

Regulations in Nepal

In order to combat money laundering, laws and regulations have been formalized and
implemented in various countries. The rules and regulations in combating money laundering may
vary from country to country.

In Nepal, Legislature- Parliament has enacted asset (Money) Laundering Prevention act. Act No.
34 of the year 2008 (2064). The act shall be applicable throughout Nepal and to any individual or
corporate body, where may be residing, remitting, transferring or sending assets from Nepal to
abroad or abroad to Nepal obtained by the act which is offence under this act. The government of
Nepal may formulate necessary rules or implementation of this act.

As activities such as money laundering affects the image and reputation of United Remit and its
employees, it has become imperative for United Remit to develop and implement appropriate
policies and procedures on AML. For developing and designing the policies and procedures on
AML, following have been taken into account:

  • Circulars and directives of Nepal Rastra Bank (Central Bank).
  • United Remit’s rules and regulations.
  • Concerned government authorities’ rules and regulation.
  • Fundamental and prudential norms on AML established by international financial institutions

Objective of the Policy

The main purpose of this policy is to avoid the movement of illicit money into the financial system
of the country. The following are the objectives of this policy manual.

  • To set United Remit’s basic guidelines on Anti-Money laundering (AML) and Know Your Customer (KYC) Policy.
  • To make United Remit staffs and Agents aware of the AML and KYC policies.
  • To meet international need and demand of these policies
  • To prevent illicit transfer of money
  • To prevent Money Laundering and use of United Remit and its agents for criminal activities

Anti-Money Laundering (AML) Policy

We at United Remit are very cautious to prevent our services being used by launderers as a
means of money laundering. We have a strict policy of not doing business with money launderers
and other persons involved in criminal activities, United Remit does not allow money transfers
intended for gaming, gambling or illegal activity and makes a concerted effort to stop/ report such
transfers to the concerned authorities.

Keeping in view the global menace of Money Laundering and Terrorist Financing, United Remit is
stringently focusing on core compliance functions and KYC & AML Policies and Procedures.
United Remit has a written compliance program within its organization to ensure compliance with
government rules and regulations. We inculcate our AML policies & procedures to all our staffs
and agents and also provide training from time to time to control and combat money laundering
activities. Our Anti-Money Laundering policy and procedures are as follows:

1. “Know Your Customer” (KYC) Policy

The objective of KYC guidelines is to prevent United Remit and its agents from being used,
intentionally or unintentionally, by criminal elements for money laundering activities. KYC
procedures also enable us to know/understand our customers and their financial dealings better
which in turn help us manage our risks prudently.

  • Obtain Valid Identifications (ID) having proper identification and address.
  • Verify details with originals.
  • Full signature of the customer on the Form for remittance.
  • Source and quantum of Income.

2. Precautions for Transactions crossing the threshold amount limit, as per local rules

We take additional precautions on transactions involving amount that cross the threshold
limit as per local rules. True copy of Original ID is being kept on record after due verification
with originals.

  • Purpose of Remittance & Source of Income is mentioned by the customer, as this enables to verify the appropriateness of the transaction.
  • Breaking up of transactions to circumvent the limit restrictions is not allowed. Proper methods are being evolved to detect multiple transactions or split transactions in order to get required information/documents.

3. Internal Control & Communication

Proper procedures have been set up for the staff to have effective control over the activities
undertaken.

  • The format of the Application Form for remittance has been designed to confirm the local regulations and is able to capture all the required data for enabling effective supervision & control.
  • Application Forms contain a declaration from the customer certifying the correctness of the data provided by him/her and in case of registered customers any change in the address given is being notified to the agent.

4. Record Keeping

We keep records of remittance transactions for a minimum period of 7 (seven) years.
Records provide the sufficient basic information on the customer and also able to
reconstruct the transaction if needed.

5. Appropriate Training to Staffs

Staffs and agents have been trained on all matters pertaining to Money Laundering &
Terrorist Financing.

6. Reporting to Regulatory Authorities

There is a proper reporting system in place both within the organization and to the
Regulatory Authorities.

Acceptable Forms of Photo Identification

When documenting a customer’s photo ID, the Business will include the type of ID, the ID
number, and the issuer of the ID.

  • The customer’s name and likeness must match the information and picture on the photo ID.
  • The photo ID must be issued by a legitimate government agency and must include a picture and expiration date (if applicable).
  • If the customer is not a resident of the Nepal, he / she must present a passport, alien identification card or other official document evidencing nationality or residence.
  • The Business must not accept any form of identification that has expired or appears to be altered or fabricated.