Nepal’s Anti-Money Laundering Laws: An Overview of the Asset (Money) Laundering Prevention Act, 2008

Date: 28 January, 2008 (14 Magh, 2064) - First Amendment: 2011

Background

Nepal’s legislative body enacted the Asset (Money) Laundering Prevention Act, 2008, which came into force immediately. The first amendment was in 2011, and it included significant changes.

Preamble

In response to the urgency of preventing money laundering, the Parliament has enacted this Act.

Key Provisions

Definition of Terms

Investigation Officer: …
Transaction: …
Non-Financial Institution: …
Professional: …
Suspicious Transaction: …

Offences

Revenue Evasion: …
Organized Crime: …
Financing of Terrorist Activities: …
Other Offenses: …

Financial Information Unit (FIU)

Establishment: within Nepal Rastra Bank
Role: Collects and analyzes information related to money laundering offenses

Liability of Banks, Financial Institutions, and Non-Financial Institutions

Government Entities: …
Banks: …
Financial Institutions: …
Non-Financial Institutions: …

Coordination Committee

Constitution: Representatives from key ministries, Office of the Attorney General, Nepal Rastra Bank
Role: Coordinate efforts in preventing money laundering and financing of terrorism activities

Additional Provisions

Department: …
Functions: …
Duties: …
Powers: …
Professionals: notary publics, auditors, insolvency practitioners, legal document drafting agents, etc.

Regulatory Compliance and International Standards

Stringent Regulations: …
Effective Enforcement Mechanism: …
Aim: Minimize the risk of criminal proceeds entering financial system

Orders Issued by the Department

Asset Transfers: …
Account Freezes: …
Asset Freezes: …
Diplomatic Assistance: …