November 6: Nepal Rastra Bank has directed microfinance companies to form anti-money laundering committees. The central bank took such decision as it intensifies its anti-money laundering drive, which until now did not cover the microfinance companies.

Dr Prakash Kumar Shrestha, executive director of the Microfinance Supervision Department of NRB, said that it is mandatory for the microfinance companies to form such committees.

“The central bank has issued clear directives related to its anti-money laundering  drive,” said Shrestha.

He clarified that this measure was taken to ensure that the money earned through illegal means would not enter the banking channel.

The central bank has also made provision for microfinance companies to issue notice to blacklist bad debtors. Microfinance companies can now recommend blacklisting debtors who do not pay loan. Microfinances could not enjoy this facility before.