Banks told to close accounts of clients not updating KYC

KATHMANDU: Nepal Rastra Bank (NRB) has instructed banks and financial institutions to close the accounts of clients who do not update their know your customers (KYC) details.

Issuing an integrated circular on Friday, the central monetary authority instructed banks and financial institutions to update the KYC details of all customers and close accounts of those who do not abide by the instructions.

As per the existing law, banks should not open accounts of a person who cannot comply with the provisions related to customer identification, and end business relations in case the account has already been opened, the NRB said amending its Unified Guidelines, 2022.