Financial Crime World

Title: Nepal Cracks Down on Financial Crimes: New Regulations Amend Asset (Money) Laundering Prevention Act

Overview

Kathmandu, Nepal—In an effort to strengthen its stance against financial crimes, the Nepali government has passed the Asset (Money) Laundering Prevention (First Amendment) Act, 2068 (2011). The amendments aim to update the existing Asset (Money) Laundering Prevention Act and expand the definition of related terms.

Preamble

Recognizing the need for updated legislation, the Nepali legislative branch amended the Asset (Money) Laundering Prevention Act.

Section 2 Amendments

Definitions of ‘Asset’ and ‘Professionals’ Expanded

  • ‘Asset’ now includes intangible assets, objects, and documents.
  • ‘Professionals’ now encompasses notary publics, auditors, insolvency professionals, and drafting agents.

Section 4 Offense of Asset Laundering

  • Anyone found to have dealt with assets derived from criminal activities has committed an offense.
  • Predicate offenses now include financing of terrorism, human trafficking, homicide, and other violations.

Section 4A and 4B

  • New sections criminalize terrorist financing.
  • Anyone who knowingly collects or provides assets for terrorist activities is committing an offense.

Section 5A

  • Assets laundered abroad but punishable in Nepal are subject to penalties as if committed within the country.

Section 7A

  • Professionals, particularly those in the financial sector, are required to report suspicious transactions to the Financial Information Unit.

Sections 11 and 12

  • Financial Information Unit’s powers expanded to freeze assets, investigate offenses, and request information, regardless of location.

Impact

These changes provide the Nepali government with stronger tools to target and prevent financial crimes, particularly those with international implications.

Further Reading