chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Assets (Money) Laundering Prevention Act, 2008

28. Obligation to Disclose Source of Property: Amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024.(1) In the course of an investigation into an offense of money laundering against any person based on a complaint received under Section 13 or information obtained from any other source by the Department, if upon inquiry under subsection (1) of Section 14a, the predicate offense is not found, but the property of such person appears disproportionate to their source of income or financial situation, or such person appears to maintain an abnormally high standard of living, or appears to have given donations, charity, gifts, loans, subscriptions, or bequests, or conducted transactions beyond their means, the source of such property shall be demanded from them.

(2) If, during an investigation by the investigating officer into a complaint filed against any person under this Act, the evidence obtained does not warrant prosecution for any offense, but the property of such person appears disproportionate to their source of income or financial situation, or they appear to maintain an abnormally high standard of living, or have given donations, charity, gifts, loans, subscriptions, or bequests, or conducted transactions beyond their means, or if a large amount of cash or other movable property is found in their possession and there is no trade, business, or regular source of income from which such an amount of property could be earned or obtained, the investigating officer shall forward the complaint case file with their opinion to the Department for necessary action.

(3) The person investigated under subsection (1) or (2) shall be required by the Department to disclose the source from which such property was acquired.

(4) If, in respect of a person investigated for a predicate offense under prevailing law, circumstances warrant prosecution for the predicate offense or the offense of money laundering under this Act, and the property of such person appears to exceed the property acquired from the offense, a claim for punishment and confiscation regarding the property derived from the offense, along with the charge, and a claim for confiscation regarding the property whose source cannot be disclosed and which exceeds the property acquired from the offense, shall be filed.

(5) Property, the source of which cannot be disclosed under subsection (4), shall be confiscated.

(6) In cases received under subsection (2) or investigated by the Department itself, when a disclosure of the source of property is required under subsection (3), and the source is not disclosed, and if there are no grounds to prosecute the investigated person for an offense under this Act or prevailing law, the matter shall be forwarded to the Inland Revenue Department for tax assessment and collection to the extent of the property whose source was not disclosed.

(7) Upon receipt of a written communication under subsection (6), the Inland Revenue Department shall determine whether or not a tax offense has been committed.
Assets (Money) Laundering Prevention Act, 2008

If no such offense is found, and the person concerned also makes a self-declaration stating that they did not acquire the property by committing any offense, such property shall be treated as income of the current fiscal year, and the maximum tax shall be assessed and collected in accordance with prevailing law. Provided that, if a tax offense is found, the Department shall, if it has the authority to investigate, investigate itself, or if another body is the investigating authority, forward it to that body for investigation.

(8) The name, surname, and address of a person from whom tax is collected under subsection (7) shall be posted on the Department's website, and the details of their income and revenue shall be sent to the Department and the Financial Intelligence Unit.

(9) Notwithstanding anything contained elsewhere in this Section, if property from which tax is collected under subsection (7) or which is confiscated is later found to be derived from an offense, there shall be no bar to action or prosecution under prevailing law.

(10) When a tax officer conducts tax assessment and tax audit, the Inland Revenue Department shall formulate and implement guidelines regarding the conditions to be complied with under this Act relating to the prevention of money laundering, terrorist activities, or financial investment in the manufacture and proliferation of weapons of mass destruction. 29. Bar to Prosecution and Punishment: (1) Nothing contained elsewhere in this Act shall bar the prosecution for either or both of the predicate offense and the offense of money laundering based on evidence obtained during the investigation of a complaint filed under this Act.

(2) The fact that a case has not been filed for the predicate offense under subsection (1), or that a case has been filed but not finally decided, shall not bar the prosecution and punishment for the offense of money laundering. Chapter - 6a

Provisions Relating to Declaration of Currency and Bearer Negotiable Instruments

29a.
Assets (Money) Laundering Prevention Act, 2008

Chapter - 6a

Provisions Relating to Declaration of Currency and Bearer Negotiable Instruments

29a. Requirement for Declaration: (1) Any person taking out of Nepal or bringing into Nepal, in their possession or through cargo, courier, postal service, or other means, Nepali currency or foreign currency or bearer negotiable instruments of a value exceeding that specified by the Nepal Rastra Bank, shall make a true declaration in writing of such currency or bearer negotiable instruments as prescribed.

(2) When making a declaration under subsection (1), if the currency or bearer negotiable instruments are being brought in or taken out in one's possession, the declaration shall be made before the concerned customs officer; if brought in or taken out through cargo, courier, postal service, or other means, the declaration shall be made before the concerned cargo, courier, or postal authority.

(3) The operator of a cargo, courier, postal service, or other similar service shall submit the details of the currency and bearer negotiable instruments declared under subsection (2) to the concerned customs officer in the prescribed format.

(4) If the declaration made under subsection (1) or (2) or the details submitted under subsection (3) are suspected to be false or inaccurate, the customs officer may require the person concerned to show the currency or bearer negotiable instruments in their possession, or may open the suspected cargo, parcel, or packet.

(5) Other provisions relating to the declaration of currency and bearer negotiable instruments shall be as prescribed. 29b. Inquiry, Confiscation, and Punishment: (1) The customs officer may, in the following circumstances, make inquiries regarding the source and intended purpose of the currency or bearer negotiable instruments sought to be taken out of Nepal or brought into Nepal:

(a) If there is suspicion of a false declaration or non-declaration of currency or bearer negotiable instruments, or
(b) If there are reasonable grounds to suspect a connection with any predicate offense.

(2) If, upon inquiry under subsection (1), it is proven that the currency or bearer negotiable instruments were not declared, or were falsely or incorrectly declared, or are connected to any offense, the customs officer shall confiscate all such currency or bearer negotiable instruments and impose a fine equivalent to the amount involved.

(3) When confiscating under subsection (2), the customs officer shall provide information, including the reasons therefor, to the concerned person. 29c.
Assets (Money) Laundering Prevention Act, 2008

29c. Obligation to Provide Information: (1) The customs officer shall immediately provide information regarding the details of currency or bearer negotiable instruments suspected under Section 29b to the Financial Intelligence Unit and the concerned authority or officer responsible for investigation and inquiry of the offense.

(2) The Customs Department shall send the details of currency or bearer negotiable instruments declared under Section 29b to the Financial Intelligence Unit every month. 29d. Deemed Goods under Customs Act: (1) For the purposes of this Chapter, currency and bearer negotiable instruments shall be deemed to be goods under the prevailing law relating to customs.

(2) Other provisions relating to inspection, search, seizure, confiscation, appeal, and proceedings regarding currency and bearer negotiable instruments required to be declared under this Chapter shall be governed by the prevailing law relating to customs. Added by the Second Amendment.## Chapter - 6b. Special Provisions Relating to Freezing of Property and Funds

29e. Dissemination of Information on Terrorist Persons, Groups, or Organizations: (1) The Ministry of Foreign Affairs shall immediately post on its website the updated list of persons, groups, or organizations listed in accordance with the decisions adopted by the United Nations Security Council regarding the freezing of property or funds of a person, group, or organization involved in terrorist activities or a person, group, or organization making financial investments in the manufacture and proliferation of weapons of mass destruction, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024, and shall send such information to the Ministry of Home Affairs through electronic means.

(2) The Ministry of Home Affairs shall immediately issue an order to freeze the property or funds of the persons, groups, or organizations in the list referred to in subsection (1) in accordance with this Chapter omitted by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024. .

(3) The Ministry of Home Affairs shall immediately publish the order issued under subsection (2) and Section 29f, along with the list, on its website.

(4) The Office of the Prime Minister and Council of Ministers, regulatory bodies, concerned bodies, the Financial Intelligence Unit, reporting entities, legal persons, and natural persons shall, for the purposes of this Chapter, regularly check the websites for the lists published under subsections (1) and (3) and obtain or cause to obtain updated information about the persons, groups, or organizations mentioned in such lists. 29f.
Assets (Money) Laundering Prevention Act, 2008

29f. Listing as Terrorist Persons, Groups, or Organizations: (1) If the Government of Nepal receives a request from any country to freeze the property of a person, group, or organization based on reasonable grounds to suspect their involvement or connection with terrorist activities or financial investment in the manufacture and proliferation of weapons of mass destruction, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024, the Ministry of Foreign Affairs shall immediately provide such information to the Ministry of Home Affairs.

(2) If there are reasonable grounds to believe that a Nepali or foreign citizen or any other person, group, or organization is involved or may be involved in terrorist activities or making financial investments in the manufacture and proliferation of weapons of mass destruction, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024, within Nepal or in any country outside Nepal, whether on its own initiative or upon a request from a country under subsection (1), the Ministry of Home Affairs shall conduct the necessary inquiry, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024.

(3) If any person, group, or organization is found to be involved in acts under subsection (2) or Section 4 within Nepal or in any country outside Nepal, or is found to be a person, group, or organization related to any act deemed to be terrorist activities or financial investment in the manufacture and proliferation of weapons of mass destruction, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024, under prevailing law, the Government of Nepal may list such person, group, or organization in the list of persons, groups, or organizations related to terrorist activities or financial investment in the manufacture and proliferation of weapons of mass destruction, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024, and issue an order to freeze the property or funds of such persons, groups, or organizations.

(4) If the grounds for keeping a person, group, or organization listed under subsection (3) cease to exist, the Government of Nepal may remove the name of such person, group, or organization from that list.

(5) If the name of a listed person, group, or organization is removed from the list under subsection (4), the Ministry of Home Affairs shall immediately publish such information on its website. 29g.
Assets (Money) Laundering Prevention Act, 2008

29g. Immediate Freezing of Property and Funds: (1) Natural persons, legal persons, concerned bodies, or reporting entities shall, without prior notice, immediately freeze the property or funds of a person, group, or organization involved in terrorist activities or making financial investments in the manufacture and proliferation of weapons of mass destruction, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024, listed in the roster under Sections 29e and 29f.

(2) When freezing under subsection (1), the following property and funds in their possession shall be frozen immediately:

(a) All property or funds owned, possessed, or controlled, directly or indirectly, singly or jointly, by such person, group, or organization,
(b) Property or funds accrued or derived from property or funds under clause (a),
(c) Property or funds of any person, group, or organization acting on behalf of or under the direction of such person, group, or organization.

(3) When freezing property or funds under this Section, such property or funds shall be frozen in a manner that prevents their transfer, creation of or subjection to lien or pledge, sale, distribution, or transaction, except in accordance with the procedures and conditions specified in this Act or the Rules framed under this Act.

(4) Natural persons, legal persons, concerned bodies, and reporting entities shall ensure that the property or funds, financial resources, or financial or other related facilities frozen under subsections (1) and (2) are not used, directly or indirectly, singly or jointly, or for the benefit of the persons, groups, or organizations referred to in Sections 29e and 29f.

(5) The details of property or funds frozen under subsections (1) and (2) shall be forwarded by natural persons, legal persons, and concerned bodies to the Office of the Prime Minister and Council of Ministers, as amended by the Act to Amend Some Nepal Acts, 2018, and by reporting entities to their regulatory body, within three days from the date of such action.

(6) The regulatory body shall forward the details received from the reporting entity under subsection (5) to the Office of the Prime Minister and Council of Ministers, as amended by the Act to Amend Some Nepal Acts, 2018, within three days. Added by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024.(6a) The integrated record, management, and preservation of property or funds frozen under this Chapter shall be carried out by the Criminal Assets Management Department established under prevailing law.

(7) Other provisions relating to the freezing of property or funds under this Chapter shall be as prescribed. 29h.
Assets (Money) Laundering Prevention Act, 2008

29h. De-listing or Release of Property and Funds: (1) A person, group, or organization whose name is included in the list under Section 29e or 29f may submit a petition to the Ministry of Foreign Affairs regarding the list under Section 29e, and to the Ministry of Home Affairs regarding the list under Section 29f.

(2) If property or funds have been frozen under Section 29g, the person, group, or organization related to the list under Section 29e may submit a petition to the Ministry of Foreign Affairs, and the person, group, or organization related to the list under Section 29f may submit a petition to the Ministry of Home Affairs, for the release of such property or funds or concerning other adverse effects suffered by them.

(3) Upon receipt of a petition under subsection (1) or (2), the concerned ministry shall conduct or cause to conduct the necessary inquiry. If the petition relates to a person, group, or organization listed in the roster published under Section 29e, the Ministry of Foreign Affairs shall forward it to the United Nations; if it relates to a person, group, or organization published under Section 29f, the Ministry of Home Affairs shall forward it to the concerned country through the Ministry of Foreign Affairs.

(4) If the petition under subsection (1) or (2) relates to the list of persons, groups, or organizations involved in terrorist activities or financial investment in the manufacture and proliferation of weapons of mass destruction, as amended by the Act to Amend Some Acts Related to Prevention of Money Laundering and Promotion of Business Environment, 2024, published by the Government of Nepal itself under Section 29f, the Ministry of Home Affairs shall conduct or cause to conduct the necessary inquiry. If such person, group, or organization is not found to be in the situation described in subsection (4) of Section 29f, or the petitioner is not found to be liable for inclusion in the list under Section 29f, the name of such person, group, or organization shall

Amended by the Second Amendment.31. Punishment for Breaching Confidentiality: A person who fails to maintain confidentiality pursuant to sub-section (2) of Section 10B. or who breaches confidentiality contrary to Section 26 shall be liable to imprisonment for a term ranging from one month to three months or a fine of up to one hundred thousand rupees or both. 32.
Assets (Money) Laundering Prevention Act, 2008

32. Punishment for Concealing or Destroying Evidence: A person who conceals or destroys evidence related to acts or activities constituting an offense relating to money laundering or financial investment in terrorist activities shall be liable, according to the gravity of the offense, to imprisonment for a term ranging from one month to three months or a fine ranging from fifty thousand to one hundred thousand rupees or both, and a person who assists in committing such an act shall be liable to half of that punishment. 33. Punishment for Obstruction or Resistance: Amended by the Second Amendment.If any person obstructs or resists investigation-related work or proceedings, the officer hearing the case may, based on the report of the investigating officer, impose a punishment of imprisonment for up to six months or a fine of up to five thousand rupees or both. Added by the Second Amendment.33A. Punishment for Causing Harassment or Annoyance: If it is proven that any person has filed a false complaint with the intent to cause any kind of harm, loss, suffering, harassment or annoyance to someone without having a reasonable cause to file such a complaint, the officer hearing the case may, based on the report of the investigating officer, impose a fine of up to ten thousand rupees on such person. Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.33B. Not to Conduct Investigation or Prosecution Maliciously: (1) An officer responsible for conducting investigation or prosecution shall not conduct investigation or file prosecution maliciously with the intention of framing an innocent person, causing harm, harassing, or protecting the actual offender.

(2) A person who commits or causes to commit an offense under sub-section (1) shall be liable to imprisonment for up to six months or a fine of up to one hundred thousand rupees or both, and shall also be subject to departmental action according to the law relating to the service conditions of such person. Amended by the Second Amendment.34.
Assets (Money) Laundering Prevention Act, 2008

Amended by the Second Amendment.34. Confiscation of Property or Instrumentalities: (1) If an offense relating to money laundering or financial investment in terrorist activities is proven, the following property or instrumentalities, in whose name, possession, ownership, or any kind of interest it may be found, related to the offense shall be confiscated:-
(a) Proceeds of money laundering,
(b) Instrumentalities related to the offense used or attempted to be used in committing an offense relating to money laundering,
(c) Property obtained from an offense relating to financial investment in terrorist activities,
(d) Property used, set aside for use, or attempted to be used by, or for, financial investment in terrorist activities, or by or for a terrorist person or terrorist organization, and
(e) Instrumentalities used or attempted to be used in committing an offense relating to financial investment in terrorist activities.

(2) If the property or instrumentalities mentioned in sub-section (1) are concealed, consumed, alienated, belong to an innocent person, or cannot be confiscated for any other reason, other property of the offender of equivalent value shall be confiscated.

(3) While confiscating property or instrumentalities pursuant to sub-section (1) or (2), the legal rights of an innocent person not involved in the offense shall be adequately protected.

(4) For the purposes of sub-section (3), notwithstanding anything contained in sub-section (1) or (2), the court shall not confiscate the property or instrumentalities of an innocent person not involved in the offense, and any property derived from such property, if the following conditions exist:-
(a) If such person is not found to be involved in any offense relating to money laundering or financial investment in terrorist activities,
(b) If such property or instrumentalities are not found to be property obtained from the offense or instrumentalities related to the offense,
(c) If such property or instrumentalities were acquired before the commission of the offense relating to money laundering or financial investment in terrorist activities, and it appears that the person concerned did not know that such property or instrumentalities could be used in the offense. Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.34A. Compensation for Loss: If any person has suffered harm or loss from an offense under this Act, and the amount of such loss is determined, the amount of such loss shall be recovered from the offender and provided as compensation to the victim. Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.34B.
Assets (Money) Laundering Prevention Act, 2008

Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.34B. Compensation for Damage: If any person has suffered damage to body or property due to the commission of an offense under this Act by someone, reasonable compensation for that damage shall be provided to the victim of the offense. Chapter-8

Miscellaneous

Amended by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35. Risk Assessment Required: (1) Regulatory bodies, investigating agencies, reporting entities, and other bodies related to this Act shall perform risk identification, assessment, and understanding, and prepare a report thereof, not less than once every year, as necessary, regarding money laundering, financial investment in terrorist activities or the manufacture and proliferation of weapons of mass destruction, risky technologies, new dimensions of risk, persons committing such acts, their registration, permission, proceedings, etc.

(2) Before conducting the assessment under sub-section (1), the reporting entity shall prepare the assessment methodology and objective basis and submit them to the regulatory body.

(3) If the regulatory body finds that the reporting entity's risk assessment report is not objective and effective, it may give necessary directives.

(4) The bodies or entities under sub-section (1) shall conduct their sectoral risk assessment and send a report thereof to the Coordination Committee.

(5) Based on the reports received under sub-section (4), the Coordination Committee shall prepare a national and sectoral risk assessment report.

(6) The bodies or entities under sub-section (1) shall, based on the risk assessment report prepared pursuant to this section, formulate and implement a risk-based annual action plan.

(7) Other provisions relating to risk assessment shall be as prescribed. Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35A.
Assets (Money) Laundering Prevention Act, 2008

Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35A. Submission of Beneficial Owner Details: (1) When any person establishes, registers, or obtains a license for any company, cooperative society, private firm, partnership firm, or any other type of legal entity by investing capital through shares or other means, if such person has, directly or indirectly, or through the name or medium of another person, singly, jointly, or collectively, invested fifteen percent or more of the shares or capital, or is otherwise the beneficial owner thereof, the details of such beneficial owner shall be submitted to the body responsible for establishing, registering, or licensing the legal entity.

(2) Until the details under sub-section (1) are submitted, the concerned body shall not register, establish, or grant the license to such legal entity.

(3) A company, cooperative society, private firm, partnership firm registered or licensed pursuant to prevailing law, or a legal entity established by investment through shares or other means as per sub-section (1), shall not issue bearer shares or other financial instruments related thereto. Provided that if a foreign legal entity has issued bearer shares or other financial instruments related thereto according to the laws of its country, information thereof shall be provided to the concerned registering body.
Assets (Money) Laundering Prevention Act, 2008

Provided that if a foreign legal entity has issued bearer shares or other financial instruments related thereto according to the laws of its country, information thereof shall be provided to the concerned registering body. If there is a regulatory body for such legal entity, such information shall also be provided to that body.

(4) If a person fails to provide details pursuant to this section or provides false details regarding the beneficial owner, the capital equivalent to the amount for which details were not provided or for which false details were provided shall be confiscated by the regulatory body, or the registering body if there is no such regulatory body, and the beneficial owner thereof shall be fined an amount ranging from one million rupees to five million rupees, and information thereof shall be provided to the Financial Information Unit and the concerned investigating or law enforcement body.

(5) The details under sub-sections (1) and (2) shall be regularly updated by the concerned company, cooperative society, private firm, partnership firm, or legal entity established by investment through shares or other means, for five years from the date the beneficial owner status of a person ends, and shall be made available to government or reporting entities upon request, and for others, shall be made available as prescribed.

(6) The body registering the legal entity and the regulatory body shall keep records relating to the beneficial owner of such legal entity for at least five years from the date of dissolution of such legal entity.

(7) A company, cooperative society, private firm, partnership firm, or legal entity established by investment through shares or other means, existing at the time of the commencement of this section, shall submit the details of the beneficial owner pursuant to this section to the body registering or licensing such legal entity within one year from the date of commencement of this section. Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35B.
Assets (Money) Laundering Prevention Act, 2008

Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35B. Maintenance of Details of Persons Exercising Actual Control or Deriving Economic Benefit: (1) A domestic or foreign person operating a legal arrangement shall maintain updated details of the natural person establishing or protecting such legal arrangement, the natural person actually controlling such legal arrangement, the person or class deriving high economic benefit from such legal arrangement, or the person providing financial, accounting, tax, or investment management and agency-related services to such legal arrangement, and shall also send an integrated ledger of such details to the concerned regulatory body, if any.

(2) The natural person operating a legal arrangement as per sub-section (1) or the natural person exercising actual control over such legal arrangement shall also disclose details relating thereto while becoming a customer of a reporting entity.

(3) If there is any change in the details under this section, such legal person shall immediately inform the concerned regulatory body thereof.

(4) A legal arrangement or person that fails to provide details, provides false details, or fails to inform the reporting entity under this section, may be fined up to one hundred thousand rupees by the regulatory body.

(5) A legal arrangement in operation at the time of the commencement of this section shall submit the details under this section to the regulatory body within one year from the date of commencement of this section.

(6) The records under sub-section (1) shall be kept securely for at least five years from the date such person ceases their association with the legal arrangement. Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35C. Details to be Maintained: (1) Notwithstanding anything contained elsewhere in prevailing law, a legal person under Section 35A. shall keep their details revealing name, address, registration and license, legal form and status, scope of work, regulatory law and body, office bearers of the board of directors or other similar committee, publicly available.

(2) If there is a beneficial owner in a legal person under Section 35A., such legal person shall, when becoming a customer of a reporting entity, also disclose the details of such beneficial owner.

(3) A legal person that fails to update and keep publicly available the details under sub-section (1), or fails to disclose the details of the beneficial owner under sub-section (2), may be fined an amount ranging from five hundred thousand to five million rupees by the regulatory body, if any, or by the registering body if there is no such body.
Assets (Money) Laundering Prevention Act, 2008

Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35D. Duties of Body Registering or Regulating Non-Profit Organizations: (1) The body responsible for registering, granting affiliation to, or regulating non-profit organizations pursuant to prevailing law shall perform the following tasks relating to the prevention of money laundering or financial investment in terrorist activities or the manufacture and proliferation of weapons of mass destruction:-
(a) Make necessary arrangements to ensure that the property of the non-profit organization is not used in money laundering or financial investment in terrorist activities or the manufacture and proliferation of weapons of mass destruction, or any other act contrary to this Act,
(b) Provide suspicious information relating to money laundering or financial investment in terrorist activities or the manufacture and proliferation of weapons of mass destruction to the Financial Information Unit,
(c) Formulate and implement or cause to implement necessary standards to identify the person or group deriving benefit from the non-profit organization to make its activities transparent and trustworthy,
(d) Conduct or cause to conduct sectoral and institutional risk assessment and management,
(e) Conduct or cause to conduct effectiveness-related review pursuant to this Act, with the concerned organization bearing the cost, based on the risk of activities relating to money laundering and financial investment in terrorist activities,
(f) Conduct inspection, supervision, or monitoring based on risk.

(2) The body responsible for registering or granting affiliation to non-profit organizations pursuant to prevailing law, or the regulatory body for such organizations, may give necessary directives to the concerned non-profit organization regarding the activities under sub-section (1).

(3) It shall be the duty of the concerned organization to comply with the directives given under sub-section (2).

(4) If a non-profit organization fails to comply with the directives given by the body granting affiliation under sub-section (2), the body granting affiliation shall send a communication to the regulatory body of such organization, if any, or to the body registering such organization if there is none, for action.

(5) A non-profit organization that fails to comply with the directives given under sub-section (2) may be fined up to five hundred thousand rupees for the first time and up to one million rupees for each subsequent time by its regulatory body, if any, or by the body registering such organization if there is none. Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35E.
Assets (Money) Laundering Prevention Act, 2008

Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35E. Compliance Report to be Submitted: (1) Banks and financial institutions, insurance companies, casinos, securities trading entities, entities professionally dealing in real estate, cooperative societies primarily dealing in savings and credit, or reporting entities specified by the Government of Nepal by publishing a notice in the Nepal Gazette shall, to ensure the suitability and effectiveness of the work to be performed pursuant to this Act, get an review conducted every year by a listed compliance auditor under Section 35CH. on the following matters and submit a compliance report to the regulatory body:-
(a) Regarding the necessary policy, institutional, technical, and control structures and their suitability,
(b) Regarding risk assessment according to institutional scope, establishment of a risk-based system, and its effectiveness,
(c) Regarding implementation of the annual action plan, reporting system, and monitoring,
(d) Regarding identification and rectification of deficiencies in risk assessment, policy, institutional, technical, control, implementation structures, and effectiveness,
(e) Regarding other matters determined sectorally by the regulatory body.

(2) The review under sub-section (1) shall be completed and its report submitted within six months from the date of the end of the fiscal year.

(3) If the regulatory body is not satisfied with the report under sub-section (2) or finds it necessary to conduct a detailed review of any reporting entity, it may conduct or cause to conduct a review of any reporting entity at any time, with the concerned reporting entity bearing the cost. Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35CH. Listing of Compliance Auditor: (1) A person wishing to work as a compliance auditor under Section 35E. shall submit an application for listing to the Financial Information Unit, attaching the details and documents as prescribed.

(2) Upon receiving an application under sub-section (1), the Financial Information Unit shall make necessary inquiries and, if it finds the applicant qualified to work as a compliance auditor under Section 35CHH., list the applicant and inform them thereof.

(3) If it is not appropriate to list the applicant under sub-section (1), the applicant shall be informed of the basis and reasons thereof.

(4) If a person listed as a compliance auditor under sub-section (2) ceases to meet the qualifications under Section 35CHH., they shall not be entitled to work as a compliance auditor, and in such case, the Financial Information Unit shall remove their name from the list. Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35CHH.
Assets (Money) Laundering Prevention Act, 2008

Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35J. Persons Deemed Disqualified from Being a Compliance Auditor: (1) The following persons shall be deemed disqualified from being listed as a compliance auditor under Section 35CH.:-
(a) A non-Nepali citizen,
(b) An insolvent due to inability to pay debts within or outside Nepal,
(c) A person who has been blacklisted or declared a defaulter in any transaction with a bank, financial institution, or cooperative society within or outside Nepal, and at least five years have not elapsed from the date of removal from such blacklist or default status,
(d) A sitting director, office bearer, or employee of a reporting entity, regulatory body, or investigating agency,
(e) A person having a financial interest in a reporting entity, or being a partner in any kind of contract or lease, or having a personal interest,
Provided that for the purpose of this clause, having ownership of less than one percent shares or being a legal advisor or auditor shall not be considered as having a personal or financial interest.
(f) A person who has not paid taxes due under prevailing law,
(g) A person convicted by a court for an offense relating to money laundering, financial investment in terrorist activities or the manufacture and proliferation of weapons of mass destruction, other serious offenses, or grave offenses,
(h) A person who has outstanding sentences or fines to be paid or served according to a court verdict.

(2) Notwithstanding anything contained in sub-section (1) and Section 35CHH., it shall not be deemed to prevent the reporting entity itself or the regulatory body, in special circumstances, from conducting or causing to conduct a special compliance audit or risk assessment by domestic or foreign experts as prescribed, or jointly, of any reporting entity.

(3) Before having a compliance audit conducted under Section 35E., the reporting entity shall have an independent review of its risk assessment conducted by a compliance auditor under Section 35CH. or a Nepali expert in risk. Provided that if for any specific reason such review or compliance audit has to be conducted by a foreign expert, it shall not be prevented subject to informing the regulatory body. Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35JH.
Assets (Money) Laundering Prevention Act, 2008

Added by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023.35JH. Duties, Functions, and Powers of the Compliance Auditor: The duties, functions, and powers of the compliance auditor conducting the review of a reporting entity under Section 35E. shall be as follows:-
(a) To gain access to any details and documents of the reporting entity,
(b) To obtain necessary information from any office bearer or employee of the reporting entity,
(c) To comply with the directives or guidance given by the Financial Information Unit and the regulatory body regarding the review, or to use information given regarding the reporting entity in the course of the review,
(d) To exercise the duties, functions, and powers available to an external auditor under prevailing law,
(e) To submit the following reports within the end of the Nepali month of Poush each year to the following bodies:-
(1) The review report to the board of directors or head of the reporting entity,
(2) The long-form report to the regulatory body,
(3) The relevant part of the report relating to transactions exceeding the prescribed limit and suspicious transactions to the Financial Information Unit.
(f) To perform other tasks as prescribed relating to conducting reviews. 36. Property to be Released: If property or instrumentalities Amended by the Second Amendment. seized under Section 18 are not found to have been obtained from an offense relating to money laundering or financial investment in terrorist activities, and if a case regarding the offense has not been filed, the Amended by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023. head of the investigating office, based on the report of the investigating officer, or if a case has been filed, the court hearing the case shall order the body that seized such property or instrumentalities to release such property or instrumentalities Amended by the Second Amendment., and upon such order, that body shall release such seized property or instrumentalities Amended by the Second Amendment.. Amended by the Second Amendment.37.
Assets (Money) Laundering Prevention Act, 2008

Amended by the Second Amendment.37. No Punishment for Providing Information: (1) If any act performed by a reporting entity or its office bearer or employee in the course of fulfilling duties under this Act appears to be contrary to financial or professional confidentiality under prevailing law, such person shall not be deemed to have violated prevailing law to the extent of fulfilling their duties under this Act.

(2) If a government body, reporting entity, or any office bearer or employee thereof has provided any report, document, record, notice, or information in good faith in the context of complying with this Act or the rules framed under this Act or the guidelines issued or directives given under this Act, such office bearer or employee shall not be deemed to have breached confidentiality, administrative or regulatory duties, or contractual obligations under prevailing law, and shall not be subject to any civil, criminal, administrative, or disciplinary action or punishment. 38. Auction Sale Permissible: (1) If any property or instrumentalities Amended by the Second Amendment. taken under control Amended by the Second Amendment. in relation to an offense relating to money laundering or financial investment in terrorist activities appear likely to rust, deteriorate, or be damaged due to other constraints, spoil or decay, lose value due to aging, or cannot be maintained or kept due to lack of space if kept for a long time, such property or instrumentalities Amended by the Second Amendment. may be sold by auction after completing the procedure under prevailing law.

(2) The proceeds from the auction held under sub-section (1) shall be deposited in a deposit account, and if it is later determined that such property or instrumentalities Amended by the Second Amendment. should be returned to the concerned person, only the amount received from the auction sale shall be returned to such person. 39. Departmental Action against Employees Involved in Investigation: If an investigating officer or any employee of the Department, while conducting an investigation or other work related to an offense relating to money laundering or financial investment in terrorist activities, knowingly performs any act with the intent to cause suffering, harassment, or annoyance to anyone, then, notwithstanding anything contained in prevailing law, such employee Amended by the Act to Amend Some Acts Relating to the Prevention of Money Laundering and Promotion of Business Environment, 2023. if the head of the office, shall be subject to departmental action by the concerned authority, and if other employee, by the head of the office. 40.
Assets (Money) Laundering Prevention Act, 2008

40. Provisions Relating to Service of Notice: (1) Notwithstanding anything contained in prevailing law, when a notice needs to be served in the name of a foreign person in an offense relating to money laundering or financial investment in terrorist activities, if such person has any kind of office or representative within Nepal, the notice shall be served in the name of such office or representative, and the notice served in this manner shall be deemed to have been duly served.

(2) If there is no office or representative under sub-section (1), the notice shall be served at the principal place of business of such person, or at the address of their permanent residence, or at any address given by them for correspondence at the time of the transaction, through telex, telefax, or other means of telecommunication capable of producing a record, or by registered post, and the notice served in this manner shall be deemed to have been duly served.

(3) Notwithstanding anything contained in sub-section (1) or (2), if any treaty to which the Government of Nepal or Nepal is a party contains a separate provision for serving notice in the name of a person residing abroad, this section shall not be deemed to prevent service of notice according to that provision. 41. Publication of Notice: When sending a notice or serving a notice in the name of a person pursuant to this Act or other prevailing law, if a report is received that such notice could not be delivered or served due to the address of such person not being found or for any other reason, then, notwithstanding anything contained in prevailing law, a public notice shall be published at least twice in a national level newspaper (in an English daily in the case of a foreigner) giving a thirty-day deadline to appear, including a brief description of the matter if an investigation has been conducted or a case has been filed before the officer hearing the case, and upon such publication of notice, such person shall be deemed to have been duly notified or served with notice, notwithstanding anything contained in this Act or other prevailing law. Amended by the Second Amendment.42. Interpretation of Intent: The interpretation of the intent, knowledge or purpose of a person accused of an offense relating to money laundering or financial investment in terrorist activities shall be made objectively based on factual circumstances. 43. Proceedings and Disposal of Case Not Hindered: Notwithstanding anything contained in prevailing law, the proceedings and disposal of a case under this Act shall not be hindered even if the accused or defendant dies before or after the filing of the case. 44.