chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Nepal Administrative Staff College Act, 1982

17. Evaluation of Other Training Programs: (1) The Institute may, from time to time, evaluate other training programs being conducted in the administration sector of the Government of Nepal and the management sector of Corporations.

(2) On the basis of the evaluation conducted pursuant to Sub-section (1), the Institute may amend or change its training programs as necessary, and in the case of other trainings, it may suggest the Government of Nepal through the Council to make such amendments or changes. 18. Training System: Useful and effective modern training techniques shall be used in the training program, considering the group of trainees and the nature of the subject. 19. Training Materials: For the training programs of the Institute, training materials that are relevant to the economic, social, political and cultural context of Nepal and useful from a theoretical perspective shall be arranged. 20. Curriculum: To make the training program more productive and effective, emphasis shall be placed on both theoretical and practical aspects in the curriculum. Chapter-7

Miscellaneous

21. Report to be Published: The Institute shall publicly publish a report on the activities of the Institute every year. 22. Delegation of Powers: The Committee may delegate all or some of the powers it has received under this Act to the Executive Director or any other employee of the Institute. The Executive Director may delegate all or some of the powers he/she has received under this Act to the Deputy Executive Director or other employees of the Institute. 23. Contact with the Government of Nepal: When contacting the Government of Nepal, the Institute shall contact through the Amended by Some Nepal Acts Amendment Act, 2075 to Make Consistent with the Constitution of Nepal.Ministry of Federal Affairs and General Administration. 24. Power to Make Rules and Regulations: (1) The Council may make necessary rules for the implementation of the objectives of this Act.

(2) For other necessary work and proceedings of the Institute, the Committee may make necessary regulations subject to the rules made under Sub-section (1), and such regulations shall come into effect after approval from the Council.
Assets (Money) Laundering Prevention Act, 2008

Asset (Money) Laundering Prevention Act, 2064

Certification and Publication Date
2064.01.14

Amending Acts

1. Asset (Money) Laundering Prevention
 (First Amendment) Act, 2068 2068.02.18
2. Asset (Money) Laundering Prevention
 (Second Amendment) Act, 2070 2070.12.12
3. Some Nepal Acts Amendment Act, 2072 2072.11.13
4. Some Nepal Acts Amendment Act, 2075 2075.11.19
5. Asset (Money) Laundering Prevention and Business
 Environment Promotion Related Some Acts Amendment Act, 2080 2080.12.30

Act No. 24 of the year 2064 made by the Legislature-Parliament

An Act made to prevent money laundering

Preamble: Whereas, it is expedient to make legal provisions relating to the prevention of amended by the Second Amendment. laundering of property obtained from criminal activities and the financing of terrorist activities,

Therefore, the Legislature-Parliament has enacted this Act. Chapter-1

Preliminary

1. Short Title, Extent and Commencement: (1) This Act may be called the "Asset (Money) Laundering Prevention Act, 2064". Amended by the Second Amendment.(2) This Act shall apply throughout Nepal and shall also apply to any person, whether within or outside Nepal, who commits an offense relating to money laundering and financing of terrorist activities.

(3) This Act shall come into force immediately. Amended by the Second Amendment.2. Definitions: Unless the subject or context otherwise requires, in this Act,-

Amended by the Asset (Money) Laundering Prevention and Business Environment Promotion Related Some Acts Amendment Act, 2080.(a) "Investigation Officer" means an officer authorized to conduct investigation pursuant to Section 15, and the said term shall also include such team if a team is formed for investigation.

(b) "Senior Foreign Official of an International Organization" means a director, manager, director, deputy director or a person having or having been entrusted with a responsibility equivalent thereto, who has been given high management responsibility of an international organization.
Assets (Money) Laundering Prevention Act, 2008

Amended by the Asset (Money) Laundering Prevention and Business Environment Promotion Related Some Acts Amendment Act, 2080.(c) "Terrorist Act" means an act which is deemed to be an offense relating to terrorist acts under the prevailing law.

(d) "Terrorist Person" means a natural person who commits any of the following acts:

(1) unlawfully and intentionally, directly or indirectly, by any means, committing or attempting to commit a terrorist act,

(2) participating as an accomplice in committing a terrorist act,

(3) organizing or directing others to commit a terrorist act, or

(4) providing assistance or contribution to a group that has a collective objective of committing a terrorist act for committing a terrorist act, knowing that the group commits or intends to commit a terrorist act, or knowing that the assistance or contribution made by him/her promotes the terrorist act.

(e) "Terrorist Organization" means any organized or unorganized group or organization of terrorists which engages in any of the following:

(1) unlawfully and intentionally, directly or indirectly, by any means, committing or attempting to commit a terrorist act,

(2) participating as an accomplice in committing a terrorist act,

(3) organizing or directing others to commit a terrorist act, or

(4) providing assistance or contribution to such a group for committing a terrorist act, knowing that the group having a collective objective of committing a terrorist act commits or intends to commit a terrorist act, or knowing that the assistance or contribution made by him/her promotes the terrorist act.
Assets (Money) Laundering Prevention Act, 2008

Explanation: For the purposes of this clause, the presence of a local representative or lower-level employee shall be deemed not to constitute physical presence. Added by the Asset (Money) Laundering Prevention and Business Environment Promotion Related Some Acts Amendment Act, 2080.(ab1) "Coordination Committee" means the Coordination Committee pursuant to Section 7bha.

(ac) "Offense Relating to Money Laundering and Financing of Terrorist Activities" means an offense under Chapter-2.

(ad) "Predicate Offense" means an offense listed in the Schedule.

(ae) "Property" means any kind of property, tangible or intangible, movable or immovable, material or immaterial, fund or any object or instrument of value, and the said term shall also include any kind of document, instrument, certificate or electronic or other instrument establishing title, interest, claim or right over the same.

(af) "Reporting Entity" means a financial institution or a designated non-financial business or profession. Amended by Some Nepal Acts Amendment Act, 2075.(ag) "Domestically Prominent Person" means the President, Vice-President, Prime Minister, Chief Justice, Speaker of the House of Representatives, Chairperson of the National Assembly, Provincial Chief, Minister of the Government of Nepal, Chief Minister of the Provincial Government, Member of the Federal Parliament, Office bearer of a Constitutional Body, Speaker of the Provincial Assembly, Minister of the Provincial Government, Officer of Special Class or equivalent or above of the Government of Nepal, Judge of the High Court or above, Deputy Speaker of the Provincial Assembly, Member of the Provincial Assembly, Central office bearer of a national level political party, Chairperson and Vice-Chairperson of the District Coordination Committee, Mayor and Deputy Mayor of a Municipality, Chairperson and Vice-Chairperson of a Rural Municipality, Senior official of an entity wholly or partially owned by the Government of Nepal, or a person having or entrusted with such responsibility. Amended by the Second Amendment.## Chapter - 2

Offenses Relating to Money Laundering and Financing of Terrorist Activities

3.
Assets (Money) Laundering Prevention Act, 2008

4. Prohibition of Financing of Terrorist Activities: (1) No person shall, with unlawful intent, wilfully, directly or indirectly, by any means, provide or collect property or funds, knowing that they are to be used, or may be used, in whole or in part, by a terrorist, a terrorist organization amended by the Asset (Money) Laundering Prevention and Business Environment Promotion Related Some Acts Amendment Act, 2080. or a foreign terrorist fighter, for a terrorist act.

(2) No person shall amended by the Asset (Money) Laundering Prevention and Business Environment Promotion Related Some Acts Amendment Act, 2080. counsel, facilitate, abet, aid or attempt to commit any act referred to in sub-section (1).

(3) No person shall, directly or indirectly, by any means, provide material support or resources, or conspire to do so, to a terrorist, a terrorist organization amended by the Asset (Money) Laundering Prevention and Business Environment Promotion Related Some Acts Amendment Act, 2080. or a foreign terrorist fighter, for committing a terrorist act.

(4) No person shall commit any of the following acts in relation to any act referred to in sub-section (1), (2) or (3):

(a) Acting as an accomplice to commit such act,
(b) Organizing or directing other persons to commit such act, or
(c) Wilfully contributing to the promotion of criminal activity or the achievement of such objective by a group of persons who commit or have a collective objective of committing such act.

(5) Financing of terrorist activities shall be deemed to have occurred in relation to the acts mentioned in this section, even if any of the following circumstances exist:

(a) No terrorist act occurred or was attempted,
(b) The property or funds were not actually used in any terrorist act or attempt thereof,
(c) The property or funds are not linked to any specific terrorist act,

Added by the Asset (Money) Laundering Prevention and Business Environment Promotion Related Some Acts Amendment Act, 2080.(c1) Property or funds were provided, directly or indirectly, for travel or other similar expenses for a person traveling from one country or place to another country or place for the purpose of preparing, planning, participating in, or training for committing or causing to commit a terrorist act,

(d) The terrorist act or the intended terrorist act occurs or is to occur in the country or territory where the act took place or was intended, or elsewhere,
(e) amended by the Asset (Money) Laundering Prevention and Business Environment Promotion Related Some Acts Amendment Act, 2080.
Assets (Money) Laundering Prevention Act, 2008

The terrorist, terrorist organization or foreign terrorist fighter is present or not present in the country or territory where the person committing such act is located, or is present elsewhere, or
(f) The property or funds were collected or provided from any lawful or unlawful source or means.

(6) If any person commits any act referred to in sub-section (1), (2), (3), (4) or (5), such act shall constitute an offense of financing of terrorist activities. Added by the Asset (Money) Laundering Prevention and Business Environment Promotion Related Some Acts Amendment Act, 2080.4a. Deemed to Have Committed an Offense: If a person responsible for complying with or ensuring compliance with any standard issued under this Act violates or causes to violate such standard with the intention of committing or causing to commit an offense under Section 3, 4 or 5, such person shall be deemed to have committed the offense. 5. Act Committed Abroad Constitutes an Offense: If any act referred to in Section 3 or 4 occurs in a foreign country or territory, and such act also constitutes an offense under the law of that country, then such act shall be treated as if it were an offense relating to money laundering and financing of terrorist activities committed in Nepal. Chapter - 3

Provisions Relating to Customer Identification and Transactions

6. Prohibition of Transaction in Anonymous or Fictitious Name: A reporting entity shall not open an account or conduct or cause to conduct any type of transaction in an anonymous or fictitious name. 7. Prohibition on Establishment or Operation of Shell Banks: (1) No person shall establish or operate a shell bank in or through the territory of Nepal.

(2) No financial institution in Nepal shall establish a business relationship with a shell bank or any financial or other institution that permits a shell bank to conduct transactions, or continue such business relationship. 7a.
Assets (Money) Laundering Prevention Act, 2008

7a. Obligation to Identify Customers: (1) A reporting entity shall, subject to sub-sections (3) and (4), properly identify and verify customers based on documents, data or information obtained from reliable sources, when performing the following acts:

(a) When establishing a business relationship,
(b) When opening an account,
(c) When conducting occasional transactions exceeding the prescribed amount,
(d) When transferring funds through electronic means (wire transfer),
(e) When there is doubt about the truthfulness or adequacy of previously obtained customer identification information requiring further verification,
(f) When there is suspicion of money laundering or financing of terrorist activities requiring further verification,
(g) When a high-risk customer or politically exposed person conducts each transaction, or
(h) When performing any other act specified by the regulatory body.

(2) The minimum documents to be obtained from a customer when identifying the customer shall be as prescribed.

(3) A reporting entity shall use documents, data or information from independent and reliable sources when identifying and verifying customers under this Chapter.

(4) A reporting entity shall adopt the following measures to properly identify and verify its customers:

(a) Obtain appropriate information and knowledge about the transaction or business relationship and its purpose or intended nature,
(b) If the customer is a natural person, obtain details including name, address and date of birth on the basis of documents prescribed under sub-section (2) among others,
(c) If the customer is a legal person or legal arrangement, obtain and verify information and knowledge about its ownership and control structure on the basis of documents prescribed under sub-section (2) among others,
(d) If a business relationship or transaction is to be established on behalf of another person, identify and verify the person on whose behalf such relationship or transaction is sought and the person acting on his/her behalf, and obtain documents including power of attorney,
(e) Obtain other necessary information and knowledge about the customer, transaction or business type and nature to fulfill obligations under this Chapter,
(f) Adopt other measures specified by the regulatory body.

(5) Notwithstanding anything contained in sub-section (1), the following reporting entities who are designated non-financial businesses or professions shall not be required to identify and verify the following customers:

(a) A casino, of a customer involved in transactions of Two Hundred Thousand Rupees or less in one day,
(b) A business operator dealing in precious metals and goods, of a customer involved in transactions of Ten Lakh Rupees or less in one day.

(6) The entire responsibility for properly identifying and verifying its customers under this Chapter shall lie with the concerned reporting entity. 7kha.
Assets (Money) Laundering Prevention Act, 2008

7kha. Special Provisions Relating to Identification of Politically Exposed Persons: (1) A reporting entity shall establish a risk management system to determine whether its customer or beneficial owner or a person seeking to become a customer is a politically exposed person.

(2) A reporting entity shall adopt the following additional measures when establishing a business relationship or conducting transactions with a foreign politically exposed person who is a customer or beneficial owner, or a senior official of an international organization or a domestic politically exposed person who appears to be high-risk due to business reasons:

(a) Obtain approval from the senior management official of the reporting entity before establishing the business relationship,
(b) If it comes to know that an existing customer is a politically exposed person, obtain approval as per clause (a) immediately,
(c) Adopt adequate measures to identify the source of property and funds of the customer or beneficial owner,
(d) Continuously monitor the business relationship or transaction with the customer,
(e) Adopt enhanced customer due diligence measures pursuant to Section 7nga.

(3) The provisions under sub-sections (1) and (2) shall also apply to family members and associated persons of a politically exposed person. 7ga. Obligation to Identify Beneficial Owner: (1) A reporting entity shall adopt necessary and reasonable measures to identify and verify the beneficial owner when establishing a business relationship or conducting a transaction.

(2) A reporting entity shall ascertain whether any person is conducting or not conducting activities related to establishing a business relationship or transaction on behalf of any other person.

(3) If upon ascertaining under sub-section (2), it appears that a person has established a business relationship or conducted a transaction on behalf of another person, the reporting entity shall adopt measures as per clause (d) of sub-section (4) of Section 7a for identifying and verifying such person. 7gha.
Assets (Money) Laundering Prevention Act, 2008

7gha. Obligation to Identify, Assess and Manage Risk: (1) A reporting entity shall identify and assess risks relating to money laundering and financing of terrorist activities based on its country, geographical area, business or profession, field of operation, customer, service or product, transaction and distribution channel among others.

(2) While identifying and assessing risks under sub-section (1), the reporting entity shall also base its assessment on the national risk assessment or risk assessment conducted by the regulatory body.

(3) When assessing risks under sub-section (1), the reporting entity shall analyze all risk-related aspects and determine the level of risk.

(4) A reporting entity shall maintain written records of all details, information and conclusions obtained relating to the risk assessment conducted under this Section.

(5) A reporting entity shall periodically conduct the risk assessment under sub-section (1) and update it as necessary.

(6) A reporting entity shall make the records under sub-section (4) available to the concerned regulatory body, and shall also make such records available to other concerned bodies if requested.

(7) A reporting entity shall arrange for necessary policy, procedural and control measures to identify, manage and mitigate risks in accordance with the level of risk identified under this Section, and shall update such arrangements from time to time.

(8) A reporting entity shall regularly monitor whether the policy, procedural and risk management arrangements under sub-section (7) have been implemented. 7nga. Provisions Relating to Enhanced Customer Due Diligence: (1) A reporting entity shall adopt appropriate measures for enhanced customer due diligence when establishing a business relationship or conducting transactions with the following customers:

(a) A customer identified as high-risk from the risk assessment conducted under Sections 7gha., 7pa. and 35,
(b) A customer conducting complex, large or unusually patterned transactions where the economic or legal purpose is not clear,
(c) A customer from a country internationally identified as not complying or only partially complying with international standards on preventing money laundering and financing of terrorist activities,
(d) A politically exposed person and family members and associated persons or customers of such person,
(e) A customer conducting transactions under sub-section (1) of Section 7dha.,
(f) A customer using high-risk new products or services,
(g) A customer suspected of being involved in money laundering, financing of terrorist activities or any other offense, or
(h) Other customers specified by the regulatory body.

(2) When conducting enhanced customer due diligence for customers under sub-section (1), the reporting entity shall also adopt additional measures determined by the regulatory body.

(3) Other provisions relating to enhanced customer due diligence shall be as prescribed. 7cha.
Assets (Money) Laundering Prevention Act, 2008

7cha. Provisions Relating to Simplified Customer Due Diligence: (1) A reporting entity may adopt simplified customer identification and verification measures for customers or transactions where the risk of money laundering and financing of terrorist activities appears low.

(2) Simplified customer identification and verification measures under sub-section (1) shall not be adopted in the case of high-risk customers, transactions, or transactions suspected of money laundering and financing of terrorist activities.

(3) Other provisions relating to simplified customer identification and verification shall be as prescribed. 7chha. Provisions Relating to Identification of Existing Customers: (1) A reporting entity shall review the customer identification and verification and its adequacy in respect of existing customers who are operating accounts or have an existing business relationship at the time of commencement of this Section, and identify and verify such customers and beneficial owners under this Chapter based on the type and nature of such customers and beneficial owners, business relationship, transaction, product or service, country or geographical area or risk of distribution system.

(2) The period for identifying and verifying customers under sub-section (1) shall be as specified by the regulatory body. 7ja. Time for Customer Identification: (1) A reporting entity shall identify and verify the customer and beneficial owner before opening an account or establishing a business relationship, while the business relationship exists, and when conducting occasional transactions.

(2) Notwithstanding anything contained in sub-section (1), if the following circumstances exist, the reporting entity may complete the verification of customer identity as soon as possible but within a maximum of three days amended by the Asset (Money) Laundering Prevention and Business Environment Promotion Related Some Acts Amendment Act, 2080. after establishing the business relationship or conducting the transaction:

(a) If the reporting entity is satisfied that identity verification can be completed at any time practically,
(b) If it is not practically possible to verify customer identity immediately due to practical reasons, and verification would disrupt the normal conduct of business and such disruption does not appear necessary, and
(c) If circumstances exist that allow effective management of the risk relating to money laundering and financing of terrorist activities.

(3) Notwithstanding anything contained in sub-section (2), the reporting entity shall verify the identity of the customer and beneficial owner under sub-section (1) in respect of the following customers and transactions:

(a) If the customer appears to be a high-risk or politically exposed person or a family member or associated person of such person, or
(b) If the activities of the customer appear suspicious. 7jha.
Assets (Money) Laundering Prevention Act, 2008

7jha. Ongoing Monitoring: A reporting entity shall conduct ongoing due diligence on the customer, beneficial owner or transaction by performing the following:

(a) Conducting scrutiny throughout the business relationship to ensure that transactions are consistent with the information held about the customer, their business or risk profile,
(b) Requesting or examining the source of assets from the customer if necessary for scrutiny under clause (a),
(c) Reviewing and updating existing documents and information to ensure that documents and information relating to politically exposed persons or high-risk customers and others, and their business relationships, transactions and beneficial owners are kept up to date,
(d) Regularly monitoring cross-border correspondent banking and wire transfer related transactions and customers,
(e) Performing other acts as specified by the regulatory body, and
(f) Performing other acts deemed appropriate by the reporting entity itself. 7ña. Customer Identification and Verification Through Third Parties: (1) A reporting entity may have certain customer identification and verification activities performed by a third party under the following circumstances:

(a) If the reporting entity is satisfied that customer identification and verification will be conducted in accordance with this Chapter,
(b) If all documents and information relating to the customer identification and verification required under this Chapter are immediately available to the reporting entity, and
(c) If it is ensured that all documents, information and data used for customer identification and verification will be provided to the reporting entity without delay upon request.

(2) Notwithstanding anything contained in sub-section (1), the reporting entity shall not accept customer identification and verification conducted by an entity acting as a third party in the following cases:

(a) If such entity is from a country identified as not complying or only partially complying with international standards on preventing money laundering and financing of terrorist activities,
(b) If such entity does not have provisions for customer identification and verification under this Chapter, or
(c) If such entity is not within the scope of regulation, inspection, supervision relating to prevention of money laundering and financing of terrorist activities.

(3) Even if customer identification and verification has been conducted by a third party under sub-section (1), the ultimate responsibility for customer identification and verification under this Chapter shall lie with the reporting entity. 7ta.
Assets (Money) Laundering Prevention Act, 2008

7ta. Provisions Relating to New Technologies or Non-Face-to-Face Customers or Transactions: (1) A reporting entity shall identify and assess risks relating to money laundering and financing of terrorist activities that may arise from existing or new products and business practices, non-face-to-face customers or transactions, delivery systems or new or developing technologies.

(2) Identification and assessment of risks under sub-section (1) shall be conducted before such products, business practices, delivery systems or technologies are brought into use.

(3) A reporting entity shall adopt adequate measures to manage the risks identified and assessed under sub-section (1).

(4) To address the specific risks relating to money laundering and financing of terrorist activities that may arise when establishing business relationships or conducting transactions with non-face-to-face customers, the reporting entity shall develop and implement policies and procedures for customer identification and verification. 7tha. Obligations Relating to Wire Transfers: (1) Before conducting a wire transfer of any currency or any amount pursuant to the prevailing law, a financial institution shall properly identify and verify the customer by obtaining the following details and information:

(a) Name of the originator,
(b) Account number of the originator, and in the absence of an account, a unique transaction reference number,
(c) Address of the originator, or in the absence thereof, date and place of birth or citizenship number or national identity card number or customer identification number,
(d) Name and account number of the beneficiary, and in the absence of an account, a unique transaction reference number,
(e) Other details or information specified by the regulatory body.
Assets (Money) Laundering Prevention Act, 2008

Explanation: For the purposes of this Section, "Originator" shall also mean the beneficial owner sending the funds through a wire transfer.

(2) The provision under sub-section (1) shall also apply to wire transfers that are bundled in a batch file.

(3) The provisions under sub-section (1), and the provisions under sub-section (1) or (2) shall not apply to wire transfers resulting from the purchase of goods or services using a debit card, credit card or prepaid card where the transaction details are visible on the card, and to wire transfers between financial institutions to their own accounts.

(4) A financial institution may not conduct customer identification and verification under sub-section (1) if the originator or beneficiary is its existing customer, if the transaction appears not to pose an offense risk, and if the financial institution is satisfied that the customer's identity has been properly identified and verified.

(5) A financial institution may not obtain details or information under clause (c) of sub-section (1) when conducting a wire transfer of Seventy-Five Thousand Rupees or less.

(6) A financial institution shall ensure that the details under sub-section (1) are included with the payment message of the wire transfer to the financial institution in the payment chain or the paying financial institution.

(7) Any financial institution in Nepal acting as an intermediary or payor in a wire transfer shall ensure that the details under sub-section (6) have been received.

(8) If the necessary documents or details under sub-section (7) are found to be missing, the financial institution shall request them from the sending financial institution or the financial institution in the payment chain.

(9) If the requested details under sub-section (8) cannot be obtained, the financial institution in Nepal acting as payor or intermediary may suspend, reject or make payment of such wire transfer based on policies and procedures under sub-section (10).

(10) A financial institution in Nepal conducting wire transfer transactions pursuant to the prevailing law shall develop and implement risk-based policies and procedures regarding monitoring, inquiry, suspension, rejection, identification of beneficial owner and beneficiary, payment, etc. of wire transfers.

(11) When conducting wire transfer transactions, a financial institution shall conduct necessary monitoring to ascertain whether the details of the originator or beneficiary under this Section are present.

(12) A financial institution conducting wire transfers of Seventy-Five Thousand Rupees or more shall properly identify the beneficiary when making payment of such amount.

(13) A financial institution sending funds or value via wire transfer, acting as intermediary, or

७त. सूचक संस्थाको दायित्व: (१) यो ऐन वा यस ऐन अन्तर्गत बनेको नियम वा जारी भएको निर्देशिका वा दिएको निर्देशनको कार्यान्वयनका लागि सूचक संस्थाले आफ्नो देश, भौगोलिक क्षेत्र, कार्यक्षेत्र, व्यवसायको आकार, ग्राहक, कारोबार तथा जोखिमका आधारमा सम्पत्ति शुद्धीकरण तथा आतङ्ककारी कार्यमा वित्तीय लगानी निवारण सम्बन्धी नीति तथा कार्यविधि बनाई लागू गर्नु पर्नेछ । 7e.
Assets (Money) Laundering Prevention Act, 2008

17. Detention for Investigation: Amended by the Second Amendment.(1) When detaining a person accused of or involved in the offense of money laundering or financial investment in terrorist activities, or against whom there are reasonable grounds for suspicion thereof, a warrant of detention shall be issued in accordance with prevailing law. Amended by the Second Amendment.(2) When any person is detained for investigation into an offense related to money laundering or financial investment in terrorist activities, the investigation officer shall, excluding travel time, produce the person before the adjudicating officer within twenty-four hours and obtain the permission of such officer to detain them in custody.

(3) When submitting a request for permission to detain under subsection (2), the investigation officer, as amended by the Second Amendment, shall clearly state to the adjudicating officer the accusation against the arrested or detained person, the reason and basis thereof, the content of any statement made by the person, and the reason why investigation needs to be conducted while keeping the person in detention.

(4) Upon a request for detention for investigation under subsection (3), the adjudicating officer shall review the relevant documents and consider whether the investigation is proceeding satisfactorily. If the investigation appears to be proceeding satisfactorily, the officer may grant permission to detain the person for a total period not exceeding ninety days, either at once or in installments not exceeding thirty days each.

(5) When permission for detention is sought under subsection (2), the detained person may submit a petition to the adjudicating officer stating the reasons and grounds why detention is not necessary. Added by the Second Amendment.(6) Where an investigation officer is required to arrest a person, place them in detention, or produce them before an adjudicating officer for extension of the detention period under this Section, the investigation officer shall, prior to doing so, provide information thereof to the head of their office as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024. Provided that, if a person needs to be arrested immediately, the investigation officer may arrest such person immediately and shall provide information thereof to the head of their office as soon as possible as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024. 18.
Assets (Money) Laundering Prevention Act, 2008

Added by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024.(1a) If any property or instrument needs to be frozen or kept under control for more than one year pursuant to subsection (1), permission of the court shall be obtained.

(2) If the property or instruments referred to in subsection (1) have been concealed, consumed, alienated, or cannot be frozen or taken control of for any other reason, the investigation officer shall freeze or take control of other property of the person suspected of committing an offense related to money laundering or financial investment in terrorist activities, which may be of equivalent value.

(3) Regarding the freezing or taking control of property or instruments pursuant to subsection (1) or (2), the investigation officer may do the following:

(a) Take control of such property or instruments themselves or issue an order to take control through the relevant government agency; or
(b) Issue an order ex parte, without giving any notice to the concerned person, to freeze such property or instruments, and send a written notification to the concerned body.

(4) Notwithstanding anything contained in subsection (1), the investigation officer may, in the course of an investigation into an offense related to money laundering or financial investment in terrorist activities, order the freezing of the property of a person who fails to appear within the period specified in the notice to appear or within the period of service under Section 40, until such person appears before the investigation officer.

(5) Where a written notice is sent for freezing any property or instrument under clause (b) of subsection (3) or subsection (4), the person, body, or institution receiving or holding such property or instrument in custody shall ensure that no one can transfer, mortgage, pledge, sell, distribute, or conduct any other transaction with or derive any other benefit from such property or instrument.

(6) Before freezing or taking control of property or instruments under subsection (3) or (4), the investigation officer shall inform the head of the investigating office as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024.
Assets (Money) Laundering Prevention Act, 2008

Provided that, if any property or instrument needs to be frozen or taken control of immediately in the course of the investigation, the order for immediate freezing or taking control may be issued, and information thereof shall be provided to the head of the investigating office as soon as possible as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024.

(7) If property or instruments are frozen or taken control of under this Section, the investigation officer shall provide written information thereof to the concerned person within three days.

(8) If any person is dissatisfied with the freezing or taking control of property or instruments under this Section, such person may submit a petition to the court specified under subsection (2) of Section 22 for the release of the frozen property or instruments.

(9) Upon receipt of a petition under subsection (8), if the property or instruments under control or frozen under subsection (1) or (4) appear to belong to the petitioner, and if the following conditions exist, the court may order the release of the frozen or controlled property or instruments:

(a) The petitioner is not found to be involved in any offense related to money laundering or financial investment in terrorist activities,
(b) Such property or instruments are not found to be property or instruments derived from any offense related to money laundering or financial investment in terrorist activities, nor are there reasonable grounds for such suspicion, and
(c) Such property or instruments are not found to be related to any other offense committed by the petitioner.

(10) If it appears that any person is attempting to create any contractual or other liability that would adversely affect the confiscation of property or instruments liable to confiscation under Section 34, the investigation officer shall have the authority to take necessary action to prevent such an act or, if it has already been done, to have it annulled.

(11) If the investigation officer takes control of or freezes property or instruments under this Section, a report thereof shall be submitted to the adjudicating officer within seven days from the date of such action.

(12) Upon receipt of a report under subsection (11), the adjudicating officer may issue necessary and appropriate orders in relation thereto.

(13) Other provisions relating to freezing or taking control of property or instruments under this Section shall be as prescribed. Amended by the Second Amendment.19.
Assets (Money) Laundering Prevention Act, 2008

Amended by the Second Amendment.19. Requesting the Concerned Country: (1) While investigating an offense related to money laundering or financial investment in terrorist activities, if it appears that property derived from the offense or instruments related to the offense required to be frozen or taken control of under Section 18 are located in a foreign country, the Department shall immediately send a written request to the concerned country in accordance with the law in force in that country to freeze or take control of such person's property.

(2) When sending a written request under subsection (1), the Department shall also specify the details of such person and the location, bank, or financial institution where such person's property or instruments are located, if available. Added by the Second Amendment.19a. Regular Monitoring of Transactions: (1) The investigation officer may issue a continuous monitoring order to a reporting entity to regularly monitor the transactions of any person under investigation for an offense related to money laundering or financial investment in terrorist activities and to submit reports.

(2) An order under subsection (1) shall generally not be issued for a period exceeding three months.

(3) If an order is issued under this Section, the reporting entity shall regularly monitor the transactions of the concerned person and send reports relating to such person's transactions as specified by the Department. Added by the Second Amendment.19b. Freezing Passports or Travel Documents: (1) Notwithstanding anything contained in prevailing law, the investigation officer may send a written request to the concerned authority not to issue a passport or travel document in the name of any person under investigation for an offense related to money laundering or financial investment in terrorist activities, or to freeze such document if it has already been issued.

(2) Upon receipt of a written request under subsection (1), the concerned authority shall not issue a passport or travel document in the name of such person if it has not already been issued, and shall freeze such person's passport or travel document if it has already been issued. Amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024.19c.
Assets (Money) Laundering Prevention Act, 2008

Amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024.19c. Adoption of Special Investigation Techniques: (1) An investigating officer may, under the direct supervision of an officer of at least the level of a gazetted second class or equivalent in the investigating office, adopt any or all of the following special investigation techniques while investigating an offense related to money laundering, terrorist activities, or financial investment in the manufacture and proliferation of weapons of mass destruction, or a predicate offense:

(a) Controlled delivery,
(b) Deployment of informants,
(c) Undercover operations,
(d) Interception of telephone or other communication media,
(e) Arrest waiver for the purpose of gathering further evidence and information,
(f) Access to the structure or system of a computer or other electronic device,
(g) Other special investigation techniques as prescribed.

(2) Prior permission of the court shall be obtained when adopting the techniques under clauses (d) or (f) of subsection (1).

(3) Information obtained during the course of an investigation under subsection (1) shall not be used or disclosed for any purpose other than the investigation and prosecution of that same offense.

(4) Other procedures relating to the adoption of special investigation techniques under this Section shall be as prescribed. Amended by the Second Amendment.20. Requirement for Safe Custody: During the investigation of an offense related to money laundering or financial investment in terrorist activities, the investigation officer shall ensure the safe custody of the property, instruments, and related documents taken control of under this Chapter omitted by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024. . 21. Assistance from Concerned Bodies May Be Sought: (1) In the course of an investigation into an offense related to money laundering or financial investment in terrorist activities, the investigating office, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024, may seek assistance from any body or public institution as necessary, and it shall be the duty of such body or institution to provide assistance when so requested by the investigating office, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024.

(2) The investigating office, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024, may also seek the assistance of the Nepal Police in the course of investigating an offense related to money laundering or financial investment in terrorist activities.
Assets (Money) Laundering Prevention Act, 2008

When assistance is so requested by the investigating office, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024, it shall be the duty of the concerned police officer or employee to provide assistance.

(3) If the investigating office, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024, deems it necessary, based on the nature of the offense under investigation, to consult with or involve any expert working in any body in the investigation, it may request the concerned body to depute such expert for a certain period, and upon such request, notwithstanding anything contained in prevailing law, that body shall make the relevant expert available to the investigating office, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024. Amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024.22. Filing of Case: (1) Upon completion of an investigation relating to an offense of money laundering or financial investment in terrorist activities, the investigating officer shall prepare an investigation report in the format prescribed by prevailing law and forward it to the concerned Government Attorney's Office. Provided that, this shall not bar a constitutional body authorized to investigate a predicate offense under prevailing law from filing or causing to file a case in a court authorized by law.

(2) Upon studying the report and case file received under subsection (1), if the evidence collected appears to provide sufficient grounds for prosecution, the Government Attorney shall file the case in the court having jurisdiction over the predicate offense.

(3) If it is found that an offense under this Act has been committed using a legal person or arrangement, a case may be filed against such legal person or arrangement and the concerned natural person(s) who committed or caused the commission of the offense using it as a medium, with separate claims for punishment and confiscation.

(4) In respect of complaints, petitions, information, or notices pending with the Department at the commencement of this Section, the Department may conduct an investigation as the investigating authority under this Act and file a case under this Section. 23. Statute of Limitations: No statute of limitations shall apply for filing a case relating to an offense of money laundering or financial investment in terrorist activities. 24. Government Party: The case relating to an offense of money laundering or financial investment in terrorist activities shall be a Government of Nepal party. 25.
Assets (Money) Laundering Prevention Act, 2008

24. Government Party: The case relating to an offense of money laundering or financial investment in terrorist activities shall be a Government of Nepal party. 25. Bar to Prosecution under Prevailing Law: (1) If an act constituting an offense of money laundering or financial investment in terrorist activities is also punishable under any other prevailing law, a case may also be filed under such other law.

(2) Omitted by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024

(3) Added by the Second Amendment

Repealed by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024.25a. 26. Confidentiality Not to be Breached: An investigation officer or any employee or person involved in the investigation work shall not breach the confidentiality of any matter or document received or come to their knowledge in the course of an investigation under this Act or in the discharge of their duties as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024, except in circumstances compelled by prevailing law. 27. Automatic Suspension: Amended by the Second Amendment. If any office bearer or employee of an organized institution established under prevailing law, or any public servant, is detained under this Act, such employee, office bearer, or public servant shall be deemed to be automatically suspended for the period of such detention, and if a case is filed against them under Section 22, until the final disposal of that case. 28.