Section 7A: Identifying the Customer

1) The indicting agency shall be subject to sub-sections (3) and (4) on the basis of documents, data or information obtained from reliable sources that accurately identify the client when acting in accordance with the following:

(a) Establishing business relationship,

(b) Opening an account,

(c) Carrying out occasional transactions above a threshold as may be prescribed,

(d) Carrying out wire transfers by electronic means,

(e) There is suspicious about the veracity or adequacy of previously-obtained customer identification information,

(f) There is suspicion of money laundering or terrorist financing,

(g) At any time of the transaction in relation to the highly risked and politically exposed person or

(h) In any other situations as prescribed by the Regulator.

2) The minimum documents to be taken with the customer while identifying the customer will be as prescribed.

3) The Reporting entity shall use reliable and independent source documents, data, and information to identify and verify the customer as per this chapter.

4) The reporting entity shall take the following measures when undertaking the identification and verification of its customers:

(a) Understanding and obtaining information and details clarifying the objectives, purpose and intended nature of business relationships and transactions,

(b) Obtaining name, address and date of birth, including the documents as prescribed in sub-section (2) where the customer is a natural person,

(c) Where the customer is a legal person or legal arrangement, understanding and verifying its ownership and control structure and obtaining such information, including the
documents as prescribed in sub-section (2),

(d)When a person is establishing a business relationship or conducting transactions on behalf of another customer, obtaining identification documents of such person and the person working on behalf of him, including evidence verifying that that such person is properly authorised to act,

(e) Obtaining other information and details regarding customer, transaction and its nature to fulfil the obligations under this chapter,

(f) Applying other measures as prescribed by the Regulator.

5) Following reporting entity as Designated Non-Financial Businesses and Professions (DNFBPs) is not mandatory to take identification and verification measures of the following customer:-

(a)A casino for a customer involving in the transactions of NRs two hundred thousand or lesser in a day,

(b) A precious metal and object business for a customer involving in transactions of NRs one million or lesser in a day

6) Entire liability of accurately identifying and verifying the identity of the customer pursuant to this chapter shall be of the reporting entity.