(1) The indexing organization shall comply with Section 7D of the Act. According to section 7f. Based on the simplified customer identification and investigation, it will be possible to establish a relationship, to continue the business relationship or to conduct business.
(2) If the indicator organization provides any product or service related to the local program for the social and economic benefit of the Nepali citizens, it may carry out simplified customer identification and investigation after obtaining prior approval from the regulatory body.
(3) Notwithstanding anything contained in sub-rule (1) or (2), an indexing organization shall not perform simplified customer identification and verification of a customer in the following circumstances:-
(a) If the client is a foreigner,
(b) If the client or client's main business is in a country that does not comply with the international standards related to prevention of financial investment in money laundering and terrorist activities,
(c) If it is listed in the securities market of a country that does not widely comply with international standards related to prevention of financial investment in customer asset laundering and invasive activities,
(d) If the details of the real owner of the legal person or legal arrangement are not publicly available,
(e) In the case of a client or a bona fide high-ranking person,
(f) is a person who is considered or suspected of being at high risk, or
(g) In case of turnover of more than one lakh rupees annually.
(4) The regulatory body may determine the necessary criteria for simplified customer identification and verification.