What Additional Disclosures Must Bank Directors and Senior Management Submit to Nepal Rastra Bank?

Nepal Rastra Bank has mandated that directors and senior management of banks and financial institutions must self-declare any criminal or administrative offenses. Under the new directive, the concerned officials are required to disclose their family details, details of any loans in default, conflicts of interest, and any assets held abroad. The central bank has also made similarly mandatory self-declarations for shareholders who purchase or transfer founder shares worth over NPR 2.5 million. Kathmandu, 4 Asar.

Self-declaration requirements for bank and financial institution directors, chief executive officers, and senior management have been expanded. Nepal Rastra Bank has amended governance regulations to include provisions for declaring the absence of offenses or accusations. According to the central bank, licensed banks and financial institutions must ensure that when appointing or nominating directors, CEOs, and senior management, the applicable laws and standards are complied with through such self-declarations.

Additionally, the regulation requires that the individual concerned declare their family details and whether they have been involved in any offenses within Nepal or abroad. The central bank released this directive on Thursday, stating that any involvement in offenses domestically or internationally must be reported in detail along with the current status of such cases. The directive also specifies that these declarations must be submitted to Nepal Rastra Bank.

The directive further requires directors and senior management to provide information on previous roles, institutions served, responsibilities held, awards received, any penalties imposed, examples of successful work, and related professional experience. Details regarding financial conduct must also be disclosed as stipulated in the directive.