Kathmandu. According to the latest data released by the Financial Information Unit, insurance companies reported a total of 244 suspicious transactions during the year.
According to the data, the total suspicious amount provided by the insurance companies during the review period was Rs 49.86 crore. This readiness in monitoring and reporting by institutions in the insurance sector has further strengthened Nepal’s AML CFT structure, considering the risk of illicit financial activities and money laundering through the insurance sector.
Based on the information provided by the Financial Information Unit, the Nepal Insurance Authority (NIA) has carried out a microscopic investigation into two suspicious transactions. The authority had submitted such an investigation report to the unit. 
According to the report, there has been a significant increase in the submission of suspicious transaction reports and suspicious activities reports by various financial and non-financial indicator institutions of the country. The report points out the potential risks to Nepal’s financial system, especially the active role of commercial banks and insurance sector.
Commercial banks are at the top of the list of institutions reporting the overall reporting. Commercial banks have reported suspicious transactions worth Rs 38.88 billion through 7,303 reports.
Development banks have reported transactions of Rs 75.96 crore through 780 reports and finance companies have reported transactions of Rs 83.92 crore through 355 reports. Apart from this, 491 reports of Rs 1.91 billion were reported in the stock market.
The cooperative sector has reported transactions of Rs 65.68 million through 36 reports while the remittance companies have reported transactions of Rs 28.56 crore through 100 reports.
The payment service provider has provided information to the Financial Information Unit (FIU) about transactions worth Rs 16.57 crore through 252 reports.
The Financial Information Unit (FIU) defines the reporting of suspicious transactions as a key indicator of anti-money laundering and terrorist financing.
