The recent Money Laundering Prevention Regulation, 2081 has introduced a centralized system for Know Your Customer (KYC) in Nepal, transforming how financial institutions verify customer identities. This regulation is a game-changer for banks, cooperatives, insurance companies, and stock brokers, as it enables them to access customer details electronically. However, despite the efficiency this offers, many National Identity Card (NID) holders are wondering: will they still need to fill out a KYC form when opening new accounts?Let’s break down what this new centralized KYC system means for bank customers, the remaining requirements, and how Saral Banking Sewa can assist you through
this shift.Understanding the Centralized KYC System in NepalUnder the updated regulation, banks and financial institutions are permitted to access customer information, including details from NID records, through digital means. This shift to a centralized KYC system simplifies verification by providing banks with essential customer identity details, like biometric data, directly from NID records. Yet, for now, customers—even those with NID—are required to complete KYC forms. The Credit Information Center has confirmed that until the centralized system is fully operational, all customers must submit a KYC form to ensure comprehensive and current information.Why Do National ID Holders Still Need KYC Forms?While the centralized KYC system will verify a person’s identity using about 25% of NID data (such as fingerprint and iris scans), additional information is still required. Banks will still need details that are not stored in NID records, including:Annual Income – To assess financial stability.Account Beneficiaries – For compliance with financial transparency laws.Family Banking Connections – To support relationship-based banking services.For institutional accounts, banks require details about indirect beneficiaries, while for personal accounts, some institutions may request information on individuals who referred the customer, particularly for foreign nationals.Key Benefits of the Centralized KYC System in NepalThe centralized system is part of Nepal’s push towards preventing money laundering and increasing security in financial transactions. This framework aims to streamline and centralize identification across sectors, eventually reducing the need for repetitive KYC form submissions at each bank.In special cases—such as for high-net-worth individuals, politically exposed persons, or accounts involving restricted countries—banks will continue to require additional documentation, including sources of assets, family information, and involvement in high-risk sectors. Changes in a customer’s address, contact number, or employment will also need to be updated promptly to maintain security and compliance.What Changes for Bank Customers in the Future?Once the centralized KYC system is fully implemented, customers will enjoy a streamlined process for opening accounts across multiple banks, with only updates required for personal information. This change is expected to simplify the onboarding process, save time, and enhance account security through verified and consistent records. The centralized system is projected for completion within two years and will likely extend to other sectors, such as telecommunications, stock market transactions, and insurance.In the meantime, for those opening new accounts or updating information, Saral Banking Sewa can simplify the process, ensuring that you have all the required documents and details prepared.How Saral Banking Sewa Supports You Through the KYC ProcessAt Saral Banking Sewa, we understand that regulatory changes can feel complex, especially as Nepal’s financial sector moves towards a digital, centralized KYC model. Our platform offers essential tools to keep you informed and help you compare KYC and other banking requirements:KYC Checklist – Access an easy-to-follow checklist of required documents to stay compliant in every account/service page.Understand KYC Policies – Get real-time support from Saral Banking Sewa’s team of highly knowledgeable staff via phone, email or other contact options provided in the website.Account Opening Assistance – Get support from Saral Banking Sewa to make your banking experience straightforward and efficient.With Saral Banking Sewa, staying up-to-date on KYC regulations and banking requirements is easier than ever. As the centralized KYC system unfolds, we’ll keep you informed with the latest tools and updates to help you manage your banking needs smoothly and securely.
