NIA’s Digital Mandate

The Nepal Insurance Authority (NIA) has instructed all insurance companies to fully digitise their payment systems as part of its efforts to strengthen controls against money laundering. Effective from January 15, all insurance-related payments must be made through the recipient’s bank account. Under the directive, all entities involved in the insurance business—from large reinsurance firms to microinsurance providers and insurance brokers—are required to comply with the new rules. This is not the first time the NIA has pushed the sector towards greater financial transparency. Previously, insurers were instructed to disburse salaries and other employee payments exclusively through banking channels. By mandating digital payments, the NIA aims to crack down on money laundering, particularly in high-value transactions. Insurance companies are required to report life insurance policies exceeding Rs 100,000 and non-life policies above Rs 300,000 to the goAML system. Similarly, large loan repayments and claim settlements exceeding Rs 10 million must also be processed digitally. These measures are part of Nepal’s efforts to align with the recommendations of the Financial Action Task Force (FATF). Nepal has remained on the FATF grey list since February 2025, placing the country under increased monitoring. Continued grey-listing could negatively affect Nepal’s international trade and financial activities.