4. Compliance Requirement
4. Compliance with AML/CFT Requirement
Due to the complexity of xBorder transactions and involvement of multiple jurisdictions, it possesses several risks associated with money laundering and terrorist financing activities. These risks can impact individuals, businesses, and financial institutions involved in the transactions. AML/CFT measures need to be implemented and checked in xBorder transactions to detect and prevent illicit activities.
4.1 Requirement as per NRB Guidelines
The compliance requirement regarding xBorder transactions is governed by the Unified Circular issued by the Foreign Exchange Management Department of the Central Bank. As per Sec-12 of the NRB circular on xBorder wire transfer transactions, the entities facilitating remittance or wire transfer transactions have to comply with the AML/CFT provisions as per Money Laundering prevention Act, 2064. In relation to the wire transfer transactions, the entity has to obtain full information of the originator and the beneficiary and certify its originality. The details of the information required is listed below.
| S. N | Particulars | Requirement | Lookup/validation Request | Payment Request |
|---|---|---|---|---|
| 1 | Originator Name | Request | ||
| 2 | Originator Acc# | Mandatory | ||
| 3 | Originator Address | Mandatory | ||
| 4 | Originator National Identity | Mandatory | ||
| 5 | Transaction - Date, Time and Purpose | Mandatory | ||
| 6 | Beneficiary Name | Mandatory | ||
| 7 | Beneficiary Address | Mandatory | ||
| 8 | Beneficiary National Identity# | Mandatory | ||
| 9 | Transaction Currency and Amount | Mandatory | ||
| 10 | Beneficiary A/C# | Mandatory | ||
| 11 | Transaction Ref# | Mandatory | ||
| 12 | Lookup/Validation Request | Payment |
4.2 Requirement as per RBI guidelines
Similarly, as per RBI guidelines, similar kind of information as listed below is required in case of xBorder transactions:
| S. N | Particulars | Requirement | Lookup/validation Request | Payment Request |
|---|---|---|---|---|
| 1 | Originator Name | Mandatory | ||
| 2 | Originator Acc# | Mandatory | ||
| 3 | Originator Address | Mandatory | ||
| 4 | Originator National Identity# | Mandatory | ||
| 5 | Customer Identification# | Mandatory | ||
| 6 | Date of birth | Mandatory | ||
| 7 | Place of birth | Mandatory | ||
| 8 | Beneficiary name | Lookup/validation request | ||
| 9 | Beneficiary A/C# | Payment | ||
| 10 | Transaction Ref# | Request |