The government has directed cooperatives and banks to maintain records of all information about their members.
The government issued the directive to be effective from Monday, exactly 10 years after the Anti-Money Laundering Act was issued.
As per the government directive, the cooperatives and banks are required to update the risk assessment of their members at least once a year and at least once in two years for the members who are at a medium risk and at least once in three years for members who are at a minimum risk, for identifying their financial risk status, as determined in the related acts and regulations.
The Department of Cooperatives gave this information at a press conference organised on Monday.
The banks and cooperatives have also been directed not to provide membership and allow financial transactions until the bases of the identification of the members have been fulfilled, Department Registrar Keshav Prasad Regmi said.
This directive has been issued to the cooperatives and the banks with the approval of the Ministry of Cooperatives and Poverty Alleviation in exercise of the rights
