Kathmandu, Aug. 13 -- Payment service providers (PSPs) will now be required to freeze the assets and other financial resources of individuals and entities designated as terrorists by the United Nations Security Council (UNSC) or Nepal's Ministry of Home Affairs. The measure is part of Nepal's effort to get off the Financial Action Task Force (FATF) grey list.

On Monday, Nepal Rastra Bank introduced the Guidelines on Targeted Financial Sanctions for Payment Service Providers. Under the new rules, freezing measures and prohibitions on making funds available apply to anyone listed in the domestic terrorist list published by the home ministry or in the UNSC's Consolidated Sanctions List.

The sanctions also extend to entities directly or ind...