Integrated software used to control money laundering in Insurance

Kathmandu: A centralized software for monitoring money laundering activity ‘goAML’ has been implemented among all insurance companies. The integrated information system (goAML) is  implemented in insurance companies with the objective of effective monitoring and controlling money laundering activities.

The goAML software, which has already been implemented in banks and financial institutions, has been implemented in insurance company from last week.

This software system will regularly collect details about the insured who come to the insurance companies to pay more than a certain amount of premiums, people with political background and suspicious transactions. Employees of the insurance company have to enter the details regularly in the server of this software.

The government of Nepal has implemented this software with the objective of curbing the tendency of laundering money earned from illegal sources through banks, financial institutions and insurance companies.

In preparation for the implementation of this software in life insurance companies, the Financial Information Unit(FIU) of Nepal Rastra Bank will provide training to the employees of the head office of the insurer in Kathmandu on Wednesday. Two employees of the AML/CFT controlling Department of Life Insurers are participating in the training.

The Financial Action Task Force (FATF), an international monitoring body on money laundering, had informed last year to conduct an on-site study on the state of asset laundering in Nepal by monitoring Nepal’s financial institutions, insurance companies, stock market and other financial sectors. But the assessment is expected to be conducted within 2021.

Foreign trade in Nepal will come to a standstill if the FATF issues a report stating that there is a conducive environment for money laundering. At the same time, there is a danger that foreign aid received by Nepal will be blocked.

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