Implementation of anti-money laundering regulations in nepalese banking sector in Nepal: An employee perspective

AML financial regulation addresses the money laundering and terrorism finance phenomena relevant internationally. This paper was aimed at the anti-money laundering awareness level of bank employees in Nepalese Banking Sector and at the influencing factor that affects the level of effectiveness in AML practices in Nepalese Banking Sector. The tests are based on the dimension of AML practices-the training & development of employees regarding AML, ethical behavior of banks, technology, control over business sophistication and auditing & reporting standards of the banks that effects the effective implementation of AML practices in banks. The study was based on 136 banking employees’ responses on the practices of AML in their respective banks. The findings indicate that the employees are aware of the AML dimensions and AML implementation practices in Nepal from the perspective of the employees of the banks is effective, and going well and more control mechanism is required for business sophistication. The study concludes that the training and development of employees regarding AML, ethical behavior of banks, change in technology, control over business sophistication, and auditing and reporting standard are equally beneficial for the effective implementation of AML practices in baking sector of Nepal, of which the control over business sophistication is most important component, that’s need to emphasize more.