Citizen Life Conducts AML/CFT Training Program
5th November 2025, Kathmandu
In a proactive move to safeguard the integrity of the financial system and reinforce public trust, Citizen Life Insurance Company Limited has successfully completed the second phase of its intensive training program focused on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT).
Citizen Life Training Program
This capacity-building initiative for the fiscal year 2081/82 underscores the company’s deep commitment to strict regulatory compliance and ethical operational practices within the crucial insurance sector of Nepal.
The recent training session, a continuation of the company’s multi-provincial effort, was strategically held on Kartik 14 in Lumbini Province at the Tiger Palace by Soaltee in Bhairahawa. This follows the successful completion of the first phase in Koshi Province, demonstrating a systematic, nationwide approach to embedding compliance deeply within the organization. The extensive participation—with 225 attendees including agents, branch managers, and various employees from across the country—highlights the significant organizational priority placed on this critical area of financial governance. Led by Kuber Pathak, the company’s Training Department Head, the program was meticulously designed to equip frontline staff with the knowledge and tools necessary to be effective gatekeepers against financial crime.
The Core Curriculum: From Legal Provisions to Practical Prevention
The training curriculum was holistic, covering both the foundational regulatory aspects and the practical challenges faced in the insurance industry’s daily operations. This comprehensive approach ensures that the large workforce, especially customer-facing agents, understands their role as the first line of defense. The key topics covered included:
Legal and Regulatory Frameworks: Participants received detailed instruction on the legal provisions related to AML/CFT in Nepal. Compliance in the insurance sector is mandated by national laws, including the Money Laundering Prevention Act, 2064 (2008), and directives issued by the Nepal Insurance Authority and the Financial Information Unit (FIU). Understanding these obligations, such as Customer Due Diligence (CDD) and Know Your Customer (KYC) requirements, is fundamental for preventing financial malfeasance.
Sector-Specific Impact: A major focus was placed on the impact of AML/CFT on the insurance industry. Insurance products, particularly those with high cash-value components or lump-sum payouts, are vulnerable to being misused for “layering”—a stage of money laundering where illegal proceeds are disguised through complex transactions. The training highlighted how criminals attempt to legitimize illegal income or finance terrorism through insurance policies, such as paying premiums with illicit funds or using the policy’s surrender value as ‘clean’ money.
Operational Policies and Prevention: The session provided clear guidance on the policies and practical measures to be adopted in daily operations. This translates the abstract legal framework into actionable steps for agents, such as identifying suspicious client behavior, conducting enhanced due diligence for high-risk customers, and monitoring transactions that appear inconsistent with a client’s known profile.
Reporting Mechanisms and Case Studies: Crucially, the program detailed the reporting mechanisms, specifically the process for filing Suspicious Transaction Reports (STRs) to the company’s Compliance Officer, who then reports to the FIU. The inclusion of real-life case discussions served to make the information tangible, helping participants recognize ‘red flags’—warning signs like unusual payment patterns, premature termination of policies, or complex ownership structures—that signal potential money laundering or terrorist financing activities.
Strategic Objectives for Trustworthy Services
Citizen Life Insurance Company’s objective for this extensive training series is twofold: regulatory necessity and a deep commitment to responsible business conduct. By systematically enhancing the awareness and capabilities of agents, branch managers, and staff, the company is actively working to:
Control Financial Crimes: Empowering staff to identify and report suspicious activities at the very point of sale is the most effective way to cut off financial crime and promote a culture of transparent transactions.
Prevent Terrorist Financing: By implementing rigorous CDD and transaction monitoring, the company restricts the use of its products to fund terrorist activities, directly contributing to national and international security efforts.
Ensure Regulatory Compliance: By demonstrating a proactive commitment to training and capacity building, Citizen Life strengthens its standing with regulatory bodies like the Nepal Insurance Authority, upholding its pledge to deliver responsible and trustworthy insurance services.
The successful conclusion of this second phase in Lumbini Province marks another significant milestone in Citizen Life’s pledge to strengthen the capacity of its workforce. In a global context where adherence to AML/CFT standards is crucial for maintaining international financial relationships, initiatives like this position the company, and the entire Nepalese insurance industry, as committed partners in the global fight against financial crime.
For More: Citizen Life Training Program
