Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank (NRB) has tightened measures aimed at combating financial crimes by allowing banks and financial institutions to temporarily freeze suspicious bank accounts based on verbal requests from authorized investigation officers.
The provision has been introduced through an amendment to the Unified Directives, 2082, issued for banks and financial institutions.
Under the revised framework, banks will be required to act immediately when they receive either verbal or written requests from agencies responsible for investigating crimes or enforcing laws related to financial offenses.
According to the central bank, banks and financial institutions must establish systems that operate 24 hours a day and seven days a week (24/7) to facilitate the temporary freezing of accounts suspected of being linked to financial crimes, money laundering, fraud, cybercrime or other illegal financial activities.
To ensure swift coordination between banks and law enforcement agencies, NRB has directed every bank and financial institution to designate a dedicated contact number for such matters and publish it prominently on their official websites.
The central bank believes that rapid communication channels will help authorities take timely action in cases where funds could otherwise be transferred or withdrawn before formal legal procedures are completed.
The new provision marks a significant shift from previous practices, where account-freezing requests often relied on formal correspondence and could be delayed by administrative processes.
The amended directive also requires banks to provide account-related information directly and without unnecessary delay when requested by authorized investigation or law enforcement agencies.
According to NRB, banks must establish mechanisms that enable the prompt sharing of customer account details and transaction information whenever legally requested by competent authorities.
The move is expected to strengthen Nepal’s anti-money laundering framework and improve the effectiveness of investigations involving financial fraud, organized crime, tax evasion, cyber-enabled financial offenses and suspicious transactions.
With the introduction of the new provisions, banks will face greater responsibility in supporting financial crime investigations and ensuring rapid compliance with requests from regulatory and law enforcement agencies.
Banking sector observers say the directive reflects the central bank’s growing focus on strengthening financial integrity, improving inter-agency coordination and preventing illicit funds from being moved through the formal banking system.
The latest amendment comes as regulators worldwide increasingly emphasize real-time cooperation between financial institutions and investigative agencies to detect, prevent and disrupt financial crimes before assets can be concealed or transferred.
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