Machhapuchchhre Bank picks ZIGRAM for AML controls in Nepal

Machhapuchchhre Bank Limited has selected ZIGRAM’s Complete AML System to expand its anti-money laundering and financial crime risk controls, according to ZIGRAM. The deployment adds sanctions screening, customer risk scoring, transaction monitoring and fraud risk management into one system for the Nepal-based commercial bank.

The selection comes as banks in Nepal and across the region add controls for digital banking activity and tighter reporting expectations. ZIGRAM said the system is being configured to support Nepal Rastra Bank rules and Financial Information Unit-Nepal reporting requirements, including goAML reporting standards.

ZIGRAM described the product as an integrated financial crime risk management platform rather than a set of separate compliance tools. In practice, that means a bank can screen customers and counterparties against sanctions and watchlists, assign risk ratings to customers, monitor transactions for suspicious patterns and manage fraud indicators through a common framework.

The company said the platform uses a microservices-based architecture, a software design in which separate functions can be deployed, updated and scaled independently. For a bank, that can allow different risk modules to be expanded or adjusted without replacing the full system, subject to the institution’s technology environment and regulatory approvals.

Local data and regulatory alignment

ZIGRAM said MBL chose the system after evaluating its scalability, deployment options, fraud risk functions and anti-money laundering capabilities. The company also cited local intelligence as part of the selection, including Nepal-focused politically exposed person data and watchlists alongside global AML and risk datasets.

Politically exposed person data is used by financial institutions to identify customers or connected parties who may require higher scrutiny because of public roles or proximity to public officials. Watchlist screening is a related control that checks names against sanctions, enforcement and other risk lists. ZIGRAM said its Nepal-specific data and knowledge of the local banking and regulatory setting were intended to improve risk detection for MBL.

The system’s reporting configuration includes support for goAML, a software platform used by financial intelligence units to receive and process suspicious transaction and related reports. ZIGRAM said alignment with NRB and FIU-Nepal requirements is part of the bank’s broader financial crime risk management framework.

Implementation with local partners

ZIGRAM said the implementation is being carried out through a delivery model that combines its technology expertise with local market knowledge and partner support. The company said it is working with local partners to support deployment, coordination with stakeholders and adaptation of global practices to Nepal’s regulatory and operational requirements.

Abhishek Bali, ZIGRAM’s chief executive and co-founder, said the company had been chosen by MBL after a rigorous evaluation process. He said ZIGRAM’s work with the bank focused on combining AML and fraud risk management tools with local data, regulatory alignment and implementation support.

Sarthak SJB Rana, program manager at Dolma Consulting, said Dolma had worked with both organisations during the engagement and saw alignment between MBL’s objectives and ZIGRAM’s financial crime risk management capabilities. He said Dolma facilitated the partnership and expected it to support compliance, financial crime risk mitigation and modernisation in Nepal’s banking sector.

ZIGRAM also thanked MBL’s leadership and teams involved in the evaluation and implementation, naming Hem Shreshtha, chief of information technology, and Bhuvan Singh Khatri, chief compliance officer.

This story draws on original reporting from Finextra Research.