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Zero tolerance against financial crime: Central bank

The central bank is adopting a zero tolerance policy against financial crime.

Addressing a programme organised by Nepal Rastra Bank Employees’ Association to mark its silver jubilee, central bank governor Dr Yubaraj Khatiwada said today that the central bank has adopted a zero tolerance policy against financial crime. “Financial crime has increased in recent years with an increase in the number of financial institutions,” he said, adding that several financial institutions have become crisis-ridden due to transgressions of their directors, some of whom have landed in jail for embezzlement of deposit.

The regulatory institutions of the banks and financial institutions is working on financial sector reform to ensure efficiency and transparency, he added.

The central bank is planning to introduce a new NRB Act enabling it to liquidate crisis-ridden banks and financial institutions and amend Bank and Financial Institution Act to give more teeth to itself.

However, the central bank is facing lots of challenges in the process of financial sector reform, Khatiwada added.