Terms of Reference (ToR) for Consultancy Services for Developing AML/CFT/PF Policy, Procedures, and Risk Management Framework

Terms of Reference (ToR) 

Consultancy Services for Developing AML/CFT/PF Policy, Procedures, and Risk Management Framework

Organization: People in Need (PIN) Nepal 

Project/Context: Institutional Compliance with SWC AML/CFT Directive 2082 

Duration: Approximately 1.5 months (6–7 weeks) 

Location: Kathmandu-based with possible limited field coordination if needed

Indicative Budget: NPR 250,000 (all inclusive)

1. Background

People in Need (PIN) Nepal is an international non-governmental organization committed to humanitarian and development work in Nepal. As a non-profit organization affiliated with the Social Welfare Council (SWC) and operating under relevant agreements, PIN Nepal must comply with the “Directive on Prevention of Money Laundering, Terrorist Financing, and Proliferation Financing for Non-Profit Organizations (Social Organizations), 2082” issued by the Social Welfare Council.

This directive, endorsed by the SWC Board on 2082-07-12 and effective 31 days thereafter, mandates that all INGOs/NGOs develop and implement robust Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) systems, including internal procedures and institutional risk assessments. It aligns with the Prevention of Money Laundering Act 2064, related regulations, and international standards (e.g., FATF).

PIN Nepal already maintains strong policies (e.g., anti-fraud, anti-corruption, partner due diligence, procurement, financial management, and sanctions screening). However, a dedicated, comprehensive AML/CFT/PF Policy and Procedures Manual tailored to the SWC Directive is required to ensure full compliance, strengthen governance, and demonstrate accountability to SWC, donors, and stakeholders.

2. Objectives of the Assignment

The consultant/firm will support PIN Nepal in developing a tailored AML/CFT/PF compliance framework that meets SWC requirements while integrating with existing organizational policies.

Specific Objectives:

• Conduct a gap assessment of PIN Nepal’s current policies and procedures against the SWC AML/CFT Directive 2082 and related laws.
• Develop a comprehensive AML/CFT/PF Policy and Procedures Manual (including internal controls, screening, reporting, record-keeping, and training elements).
• Design and facilitate an Institutional Risk Assessment (with a risk matrix, mitigation measures, and monitoring plan).
• Provide recommendations for implementation, including focal person roles and the management, training needs, partner/vendor screening, and integration with existing systems.
• Ensure the deliverables align with global best practices while remaining practical for Nepal operations and local partners.

3. Scope of Work

The consultant will undertake the following key tasks (over 1.5 months):

1. Inception & Gap Assessment (Week 1)

• Review the full SWC Directive, related Nepali laws/regulations (Money Laundering Act 2064, Rules 2081, Social Welfare Act), and the provided AIN PPT/overview.
• Review PIN Nepal’s existing policies (anti-fraud, anti-corruption, due diligence, etc.).
• Conduct consultations with key PIN staff (senior management, finance, programs, compliance).
• Deliver a Gap Assessment Report with clear recommendations.

2. Development of Core Documents (Weeks 2–4)

• Draft AML/CFT/PF Policy and Procedures Manual covering at minimum (per Directive Sections 3–8):
  • Internal governance structure and focal person.
  • Risk identification, assessment, and management (institutional, partners, beneficiaries, donors, transactions).
  • Customer/partner due diligence, beneficial ownership identification, and screening (sanctions lists).
  • Record-keeping (5+ years), books of accounts, and reporting mechanisms.
  • Warning Signs, suspicious activity reporting, and internal controls.
  • Training and awareness for PIN national staff and associated partners.
  • Integration with existing PIN policies and SWC project reporting.
• Develop a Risk Assessment Matrix and mitigation framework.
• Draft implementation guidelines (e.g., templates for screening, annual review processes).

3. Review, Validation & Capacity Support (Weeks 5–6)

• Present drafts to PIN management for feedback.
• Facilitate 1–2 validation workshops (internal).
• Incorporate feedback and finalize documents.
• Provide a short implementation roadmap, including training outline and monitoring indicators.

4. Final Deliverables

• Inception Report + Gap Assessment Report.
• Final AML/CFT/PF Policy and Procedures Manual (in English, professional formatting, ready for approval).
• Institutional Risk Assessment Matrix & Mitigation Plan.
• PowerPoint summary presentation for internal use.
• Brief training materials/guidance notes for rollout.

All deliverables must reference the SWC Directive explicitly and be tailored to PIN Nepal’s operations (INGO context, partnerships, cross-border funding).

4. Experience and Qualifications

The firm/consultant team should demonstrate:

• Proven expertise in AML/CFT compliance for INGOs/NGOs in Nepal or similar jurisdictions (minimum 3 to 5 years relevant experience).
• Strong knowledge of Nepali legal framework (SWC Directive, Money Laundering Act, FATF standards).
• Experience developing policies, risk assessments, and procedures for non-profits.
• Excellent writing skills in English (Nepali desirable).
• Familiarity with international NGO operations, donor requirements, and governance best practices.

Team Composition (suggested): Lead Consultant (AML/CFT expert) + Supporting expert (legal/governance).

5. Timeline

• Total Duration: 6–7 weeks (starting mid of July /late August 2026).
• Inception Report: Within 7–10 days of contract signing.
• Draft deliverables: By end of Week 4–5.
• Final deliverables: By end of assignment.

6. Reporting and Coordination

• The consultant will report to PIN designated focal person – PIN Head of System and Operation. 
• Regular updates (weekly check-ins).
• PIN will provide relevant documents, facilitate internal meetings, and cover logistical costs for workshops (venue, refreshments if needed).

7. Payment Terms

• Schedule:
  • 30% upon signing and submission of Inception/Gap Report.
  • 40% upon submission of draft Policy & Risk Matrix.
  • 30% upon approval of all final deliverables.
• Tax deduction as per Government of Nepal rules. VAT registration is mandatory.

8. Evaluation Method (Performance of Evaluation Criteria)

A. Price (40%) The evaluation result of this criterion equals the following formula: Price A / Price B × 40 Where:

• Price A = lowest price from all submitted offers
• Price B = actual price offered by the tenderer

B. Quality (60%) The bids will be evaluated by a procurement committee. Total technical marks = 60.

The evaluation result equals: Points B / Points A × 60

9. Application Procedure

Interested consultants/firms must submit two separate sealed envelopes (or separate PDF files if submitted electronically):

1. Technical Proposal (containing company profile, CVs of key personnel, understanding of the assignment, detailed methodology, workplan, and timeline).
2. Financial Proposal (lump sum amount in NPR, including all taxes and costs).

Required Documents:

• Company/Firm registration certificate
• VAT/PAN registration certificate
• Tax clearance certificate

Budget Ceiling: NPR 250,000 (all inclusive). Proposals exceeding this ceiling may not be considered.

Submission Deadline: [14.07.2026] Submission Email/Address: nepal.securebids@peopleinneed.net

PIN Nepal reserves the right to accept or reject any or all proposals without assigning any reason.