KATHMANDU, Jan 7: The Nepal Insurance Authority (NIA) has directed all institutions involved in insurance transactions to adopt mandatory electronic payment systems to enhance financial transparency and curb money laundering.
Issuing circulars to life and non-life insurers, microinsurance and reinsurance companies, and insurance brokers, the regulator instructed them to make all payments only through bank accounts held by the concerned individuals or institutions. The directive will come into force from January 15.
NIA instructs insurers to comply with anti-money laundering rul...
The NIA said the decision aligns with the Money (Asset) Laundering Prevention Rules, 2025. Under the government-issued provisions, insurers must deposit insurance claim settlements directly into the beneficiary’s bank account, in accordance with the insurance policy terms or prevailing laws.
The authority noted that most government bodies have already implemented digital-only payment systems for all types of transactions through the banking channel.
Earlier, the NIA had required insurers to disburse salaries, remuneration and related payments to employees exclusively through bank accounts. According to the authority, the latest arrangement aims to promote non-cash transactions, reduce money laundering risks, strengthen financial transparency, and encourage the use of digital payment systems.
The move comes as the government continues efforts to remove Nepal from the Financial Action Task Force (FATF) ‘grey list’, where the country has remained since February 2025.
Under FATF requirements, the government was supposed to prepare a National Risk Assessment Report by mid-November 2025, incorporating proposed reform measures. However, sector-specific reports required to complete the assessment have yet to be finalised.
