chhatramani/Nepal-Legal-Text-Corpus-44laws huggingface dataset:
Money Laundering Prevention Act 2064

Chapter-3 Provision On Customer Identification And Transactions

Section 7S: Obligation of Reporting Suspicious Transactions
1) The Reporting Entity shall make a suspicious transaction report to the Financial Information Unit within three days as far as possible if they find the following circumstances in relation to any customer, transaction or property.
(a) If it is suspected or has reasonable grounds to suspect that any of the offences relate to, or are related to, financial investments or other offences in the creation and expansion of weapons of mass destruction or terrorist acts or
(b) If it suspects or has reasonable grounds to suspect that the property is related or linked to, or is to be used for, terrorism, terrorist, terrorist acts or by terrorist organisations or those who finance terrorism.
2) The reporting entity shall also submit the report of attempted transactions or activity to the Financial Information Unit as mentioned in sub-section (1).
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2A) If it is found that the customer has noticed a suspicious transaction in accordance with sub-sections (1) or (2), the customer shall be identified or updated after submitting a report regarding the suspicious transaction to the indicating institution.
3) Additional grounds or guidance on detecting suspicious activity, the format, method, and procedure for reporting suspicious transactions, and other related information shall be as prescribed by the Financial Information Unit.
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Added by Act, 2080 to amend certain Acts relating to Prevention of Money Laundering and Promotion of Business Environment.

Money Laundering Prevention Act 2064

Chapter-3A Regulation and Supervision of Reporting Entities

Section 7T: Regulation and Supervision of Indicative Institutions
1) Regulation, supervision and monitoring of reporting entity under this Act shall be conducted by the Regulator mandated for the regulation and supervision of such entity pursuant to prevailing laws.
2) If there is any provision in the prevailing law regarding the regulatory body of an indicator institution, the Government of Nepal may, in consultation with the National Coordination Committee, by publishing a notice in the Nepal Gazette, designate anybody or any institution existing as a regulatory body to act as a regulatory body of such indicator institution.
3) In relation to the regulation and supervision of the reporting entity, shall undertake the functions, responsibilities and powers set out in this Act, in addition to the functions, responsibilities and authorities prescribed under other prevailing laws.
Money Laundering Prevention Act 2064

Chapter-3A Regulation and Supervision of Reporting Entities

Section 7V: Regulatory Actions and Sanctions against a Reporting Entity
1) The Regulator may take any or all of the following actions or sanctions against a reporting entity failing to comply with any provisions of this Act, Rules, or Directive issued pursuant to sub-section (2) of section 7U:
(a) To issue written reprimand warnings,
(b) To impose fines from one million to NRs fifty million to the financial institution and from one hundred thousand to ten million to other reporting entities based on the gravity of violations  of this Act, rules or orders, or directives issued thereunder,
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(b1) on repeated contravention of this Act or the regulations made under this Act or the guidelines issued or the orders or directions given, to impose the maximum penalty pursuant to clause (b) for each infringement based on the seriousness of such violation, the capital or annual turnover of the institution concerned,
(c) To impose full or partial restriction on the business, profession or transaction,
(d) To suspend the registration or permission or license,
(e) To revoke the permission or license or cancel the registration.
2) The Regulator may impose other appropriate sanctions under prevailing laws if the sanctions provided in sub-section (1) are not sufficient to prevent the violation of the provisions of this Act or Rules or directives or orders thereunder. The imposed sanctions shall be effective, proportionate, and dissuasive.
3) When the regulatory body punishes the indicting institution in accordance with sub-section (1) or (2), the punishment shall be effective, proportionate, and deterrent.
4) The reporting entity shall take appropriate action against a staff or an official if it faces regulatory actions or sanctions under this Act due to the activities of such staff or officials as per its law or
prevailing laws.
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4A) If the indicting body does not take action in accordance with sub-section (4), the regulating body may exercise the authority of the indicting body to take necessary action against such officer or employee of the indicting body or the concerned officer of the indicting body may be fined or removed from office or both according to clause (b) of sub-section (1) according to the condition of maintenance, the seriousness of the matter and the nature of the indicting body.
5) It shall provide a reasonable opportunity for clarification to the reporting entity before taking regulatory action or sanction pursuant to this section.
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6) A reporting entity which is not satisfied with the action or sanction of the Regulator may appeal to the related High Court within thirty-five days.
1Added by
to amend certain Acts relating to Prevention of Money Laundering and Promotion of Business Environment Act, 2080.
2
Amended by
to amend certain Acts relating to Prevention of Money Laundering and Promotion of Business Environment Act, 2080.
Money Laundering Prevention Act 2064

Chapter-3B Committee of Directors and Co-ordinating Committee

Section 7W: Board of Directors
1) There shall be a Board of Directors as follows to monitor and review the effectiveness of the activities related to the prevention of financial investment in the creation and expansion of assets, terrorist acts or weapons of mass destruction:
(a) Minister of Finance, Government of Nepal
Chair Person
(b) Law Minister of the Government of Nepal
Member
(c) The Attorney General
Member
(d) Chief Secretary of the Government of Nepal
Member
(e) Governor of the Nepal Rastra Bank
Member
(f) The Coordinating Committee, Coordinator
Member
(g) Secretary, Ministry of  Law, Justice and Parliament Affairs
Member
(h) Secretary, Ministry of Finance
Member-Secretary
2) The Board of Directors shall meet once in three months.
3) The Chairperson of the Board shall determine the date, time, and place of the Board of Directors’ meeting.
4) The procedure of the meeting of the Board of Directors shall be as determined by the Committee itself.
5) The duties and powers of the Board of Directors shall be as follows:
(a) To review and recommend to the Government of Nepal the draft of the national policy and program received from the Coordination Committee regarding the prevention of finance investment in the creation and expansion  of assets, terrorist acts or weapons of mass destruction,
(b) To implement and review the national policies and programs received from the Coordinating Committee regarding the prevention of financial investment in the creation and expansion of assets, terrorist acts or weapons of mass destruction,
(c) To determine and coordinate the work to be carried out at the federal, provincial and local levels in relation to the prevention of financial investment in the purification of property, the creation and expansion of terrorist acts or weapons of mass destruction, and to create the necessary mechanisms for this purpose,
(d) To give necessary directions to the bodies concerned to implement or cause to be implemented the provisions pursuant to this Act regarding t
Money Laundering Prevention Act 2064

Chapter-3B Committee of Directors and Co-ordinating Committee

Section 7X: National Coordination Committee
1)  There shall be a National Coordination Committee constituted as follows to coordinate inter-related entities and to provide necessary suggestions to the Government of Nepal with regard to
the prevention of money laundering and terrorist financing and predicate offences:
(a) Secretary(Law) Office of Prime Minister and Council of Minister
The Co-ordinator
(b) Secretary, Ministry of Finance
Member
(c) Secretary, Ministry of Law, Justice and Parliamentary Affairs
Member
(d) Secretary, Ministry of Home Affairs
Member
(e) Secretary, Ministry of Foreign Affairs
Member
(f) Secretary, Ministry of Land Management, Cooperatives and Poverty Alleviation
Member
(g) Secretary, Commission for the Investigation of Abuse of Authority
Member
(h) Deputy Attorney General, Office of Attorney General
Member
(i) Deputy Governor, Nepal Rastra Bank
Member
(j) Inspector General of Police, Nepal Police
Member
(k) Chief, Department of Money Laundering Investigation
Member
(l) Chief, The Financial Information Unit
The Member-Secretary
2) The Coordinating Committee may, as required, invite the office bearers or experts of the concerned bodies to the meeting.
3) The committee itself shall determine the procedures for the meeting of the Coordinate Committee.
4) The National Coordination Committee shall have the following function, duty and power:
(a) To prepare a policy for the prevention of offences of
Money Laundering or  Terrorist Financing in the creation and expansion of weapons of mass destruction terrorist acts
and submit the policy to the Board of Directors,
(b) Submitting an integrated report to the Board of Directors, including a regional and national risk assessment,
(c) To make the relevant body or institution to implement the plan of action and guidance on the basis of risk assessment and to monitor whether such plan of action is implemented effectively or not,
(d) To give suggestions or directions as may be necessary to maintain functional coordination between the bodies concerned,
(e) To issue necessary guidance regarding the protection, confidentiality and use of the details or information to be kept in accordance with this Act,
(f) To make recommendations to the relevant bodies for carrying out the necessary study, investigation, conduct or control in relation to the prevention of financial crimes, and
(g) To carry out any other work relating to coordination.

Money Laundering Prevention Act 2064

Chapter-4 Financial Information Unit

Section 8:
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1 Amendments to the Prevention of Money Laundering and Promotion of Business Environment Act, 2080.

Money Laundering Prevention Act 2064

Chapter-4 Financial Information Unit

Section 8A:
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1 Amendments to the Prevention of Money Laundering and Promotion of Business Environment Act, 2080.
Money Laundering Prevention Act 2064

Chapter-4 Financial Information Unit

Section 9: The Financial Information Unit
1) The Financial Information Unit shall be established as a department in Rastra Bank with functional independence and autonomy to receive suspicious transaction reports and other information related to money laundering, terrorist financing, and predicate offences, analyse suspicious transactions and other information, and disseminate the results of such analysis to the Department.
2) The Governor shall, in consultation with the Coordinating Committee, appoint as the head of the Financial Information Unit an officer having the qualifications and experience as prescribed from among at least the first-class officers working in the Rastra Bank and the head of the Financial Information Unit shall be accountable to the Coordinating Committee.
3) The Financial Information Unit’s office will remain in the Kathmandu Valley, and with the government of Nepal’s approval, it can open a branch office as needed.
4) The financial information will be according to the seal of the unit and the organisational structure approved by the Government of Nepal.
5) The Financial Information Unit shall consist of employees of regulatory bodies, investigative bodies and other relevant government bodies, as required, and the conditions of service of such employees shall be in accordance with the law.
6) The remuneration and benefits of the employee employed in the financial information unit shall be in accordance with the law relating to such employee’s conditions of service.
7) The head of the unit may send Financial information regarding the quality of performance of the employee employed in the unit in writing to the concerned authority, and the authority concerned shall also assess the performance of such employee on the basis of that information.
8) The National Bank will provide financial information for the budget, resources and resources required by the unit.
9) The financial information will be based on the qualifications and experience of the personnel recruited in the unit, staff management, accountability, incentives, and other arrangements.
10) Financial information will be as determined by the Board of Directors in other arrangements related to the operation of the unit.
Money Laundering Prevention Act 2064

Chapter-4 Financial Information Unit

Section 10A: Providing Transaction Information
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1) If a person transacts more than the limit set by the same bank within the period fixed by the national bank in one go or repeatedly, the indexing institution and the government body will have to provide information to the financial information unit within fifteen days of the date of such transaction.
Explanation: For the purposes of this sub-section, “Government body” means the Freight Office, the Office of the Registrar of Companies and such other Government body as may be prescribed by the Government of Nepal.
2) The format, method and procedure for providing information pursuant to sub-section (1) shall be as the Financial Information Unit prescribes.
1 Amended by the second amendment.

Money Laundering Prevention Act 2064

Chapter-4 Financial Information Unit

Section 10B: Maintaining Confidentiality of Information
1) The report on the transactions pursuant to section 10A received in the Financial Information Unit, the report on suspicious transactions, and the conclusions drawn from the analysis of information, documents, and details that remain confidential shall be used in the investigation of the crime, subject to the conditions specified in the source of information (intelligence) or in the transmission of that conclusion.
2) Every person who has duties for or within the Financial Information Unit is required to keep any information obtained within the scope of his or her duties confidential even after the termination of his duties, except as otherwise provided in this Act or as ordered by a court.
3) The Financial Information Unit shall develop and implement mechanisms and procedures for management and confidentiality, secure use of information received pursuant to this Act, its use, analysis, dissemination, and exchange with foreign counterparts, and access to such information.
4) The Financial Information Unit may issue directives to any reporting entity or concerned agency regarding the method, form, time, and other procedures regarding reporting, notice, and information requirements pursuant to this Act.
5) It shall publish the directives on its website and pursuant to sub-section (4).

Money Laundering Prevention Act 2064

Chapter-5 Structure of Department and Its Functions, Responsibilities and Powers

Section 11: Establishment of the Department
1) The government of Nepal shall establish an Asset Laundering Investigation Department to investigate against and inquire into the offences under this Act.
2) The chief of the Department shall be at least a first-class officer of civil service.
3) The organisational structure of the Department and the required number of staff shall be as prescribed by the Government of Nepal.
4) The Government of Nepal may make the required specialists available to the Department from the concerned entities or public institutions.
Money Laundering Prevention Act 2064

Chapter-5 Structure of Department and Its Functions, Responsibilities and Powers

Section 12: Exchange of Cooperation Regarding Investigation
1) The department may request or provide for the exchange of the information of investigation with its foreign counterpart carrying out functions of a similar nature, on the basis of reciprocity, upon demand or upon its own request.
2) It may, if necessary, conduct investigations of money laundering and terrorist financing together with its foreign counterpart carrying out similar functions.
3) The Department, in accordance with sub-sections (1) and (2), develops mutual arrangements with foreign counterparts carrying out similar functions to determine the method, terms and conditions, and procedures for the exchange of cooperation.
4) The provisions relating to non-infringement of privacy pursuant to section 26 shall be equally applicable with respect to information received from an entity of a country acting in accordance with sub-section (1) of the same nature.
5) Other arrangements for the exchange of research cooperation will be as prescribed.
Money Laundering Prevention Act 2064

Chapter-6 Provisions on Investigation and Inquiry

Section 13: Complaint
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1) Any person who has knowledge that somebody has committed, is going to commit or is committing any act constituting money laundering and terrorist financing and predicate offences may submit a complaint, application, information or notice to the Department in writing or oral form:
(a) In the case of offences relating to financing terrorist acts or the manufacture and proliferation of weapons of mass destruction in the police office,
(b) In the case of an offence relating to the purification of property relating to an offence, in the office investigating the relevant offence in accordance with the prevailing law,
(c) In the department where the matter relates to the money laundering, it is not related to the associated fault.
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1A) A complaint or information pursuant to sub-section (1) shall be registered by the office or body other than the office or body authorised to investigate the complaint or information and sent immediately to the office or body concerned for necessary action.
2) If the complaint, application, information, or notice is received in writing, the Department shall register it, and the Office of Research shall transcribe the oral complaint, application, information, or notice it receives and then register it in accordance with sub-section (1).
However, suppose anyone complains with an intention to keep his name confidential. In that case, a code designated by the Chief of the Department should be used in place of the complainer’s name while registering such a complaint.
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3) Notwithstanding anything contained in sub-section (1) or (2), Information should be officially registered as a complaint if any staff of the Department knows by any means that certain person(s) has committed or is committing or is going to commit money laundering or terrorist financing.
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4) If it appears that the complaint needs to be endorsed based on the merits of the complaint received pursuant to sub-section (1) or (2), the complainant concerned may be endorsing.
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5) If the complainer endorses requests for confidentiality of name and address, it shall be kept confidential.
1 Amendments to the Prevention of Money Laundering and Promotion of Business Environment Act, 2080.
2
Added by the Prevention of Money Laundering and Promotion of Business Environment Act, 2080.
3 Amended by the second amendment.
Money Laundering Prevention Act 2064

Chapter-6 Provisions on Investigation and Inquiry

Section 14: Preliminary Inquiry or Investigation
1) If a complaint is received pursuant to section 13 or information from a financial information unit pursuant to section 10, including the analysis results, the chief shall make or cause to make a preliminary inquiry if he receives a complaint or information.
2) The Chief of the office required to conduct a preliminary inquiry pursuant to sub-section (1) may, having regard to the nature of such complaint or information, summon any officer subordinate to him at an appropriate time.
3) The officer designated for the preliminary investigation may exercise the powers of the investigation officer available in this Act.

Money Laundering Prevention Act 2064

Chapter-6 Provisions on Investigation and Inquiry

Section 14A: Send in Writing of Form a Ream to Investigate Related Crimes
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1) When the above department investigates the complaint filed in accordance with clause (c) of sub-section (1) of section 13, it shall also investigate whether or not there is a related fault in such complaint.
2) If, during the investigation pursuant to sub-section (1), it is found that there is a corresponding fault, it shall be sent in writing for the investigation of such fault.
3) If, during the investigation pursuant to sub-section (1), it is found that in addition to the offence relating to the purification of property, two or more related offences are to be investigated. The offence is of a serious or complex nature, or the investigating officer of such related offence is to be investigated with the participation of different bodies or public institutions, the head of the department may, as required, constitute a joint investigation team consisting of representatives of the bodies or institutions concerned.
4) The body constituted by the Department in writing pursuant to sub-section (2) and the Joint Investigation Team constituted pursuant to sub-section (3) may exercise all the powers available to the Investigating Officer pursuant to this Act while conducting an investigation into an offence relating to the purification of property.
5) The Joint Investigation Team constituted in accordance with sub-section (3) shall, after completing the investigation, prepare an integrated investigation report of the crime related to the purification of property and the associated crime and send it to the investigating body in the relevant crime for the purpose of filing a case.
6) After the completion of the investigation by the concerned body in accordance with sub-section (2), the investigation report in accordance with sub-section (1) of section 22 shall be prepared and sent to the office of the concerned public prosecutor.
7) The other arrangements relating to the Joint Investigation Team to be constituted pursuant to sub-section (3) shall be as prescribed.
1 Amendment to the Prevention of Money Laundering and Promotion of Business Environment Act, 2080.