Customer awareness on KYC/ AML/ CFT measures 

•    Know Your Customer (KYC) is the process of identifying and verifying customer’s identity. As customers initiate various transactions through the Bank, the Bank requires sufficient and correct information/ document evidencing such information from their customer. 

 
•    Whenever information such as – phone number, temporary address, occupation, business, etc. is changed, such information should be provided to the Bank for updating your details. 
 
•    Bank will not initiate any transaction unless the customer is properly identified. Hence, customer should not hesitate to provide their information and documents for Banking purpose, it shall be kept confidential by Banks. 

 
•    Information about our customers and their transactions is obtained by Bank for preventing Money Laundering and Terrorist Financing. 

 
•    Any earnings/ returns from illegal activities if entered and channelized through Bank accounts, may be termed as laundering of the black money. 

 
•    If someone else requests, you to open Bank account in your name without any specific reason; accounts maintained in your name may be used for their undue benefit.  

 
•    Amount received in your account from third party should have genuine purpose and the source of such fund should be legal. 

 
•    While depositing Rs 10.00 lakh or more, source of fund is to be disclosed for ensuring that the earnings are not from illegal activities. 

 
•    If you are funding to any individual or institution, such fund should not be used for financial support to any individual terrorist or group of terrorists. 
 
 
•    Amount should be deposited to third party account with valid purpose only. Hence, if deposit of Rs 1.00 lakh and above is to be made to third party, purpose of deposit must be disclosed. 

                                                             Money Mule and Mule Accounts

A “money mule”, also referred to as “mule”, is an individual who is tricked to receive, transfer or move, withdraw illegally acquired money on behalf of criminals as part of a money laundering scheme. Similarly, a mule account is a personal or business account used to receive and move funds with illicit origins such as fraud, cybercrime, drug trafficking, or other organized crime. The money mule lets his/her bank account be used to move money often without realizing that the money is generated from a crime. The money mule may knowingly assist criminals or may be an unsuspecting victim who has been lured through social media advertisements, fake job offers, prize scams, gift scams, romance scams, investment fraud etc.

Usually, a mule herder targets young people to recruit them as money mules. The mule receives illicit funds into his/her bank account, often from victims of fraud or other crimes. The mule is then instructed to transfer the funds to another account, or to withdraw the money and send it via other means (e.g., cash, wire transfers to high risk jurisdictions, or cryptocurrency). Once the funds are transferred, the criminals sever contact with the mule, leaving him/her exposed to legal consequences. Criminals use mules to distance themselves from the illegal money for the time being, making it harder for the police to trace them.

Vide a recent circular dated 2083/03/26 B.S., Nepal Rastra Bank has directed banks and financial institutions (BFIs) to raise public awareness on potential money mule transactions using dormant accounts.