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ACT

1. Financial Action Task Force on Money Laundering (FATF)

 The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. The inter-governmental body sets international
standards that aim to prevent these illegal activities and the harm they cause to society. As a policy-making body, the FATF works to generate the
necessary political will to bring about national legislative and regulatory reforms in these areas.
 With more than 200 countries and jurisdictions committed to implementing them. The FATF has developed the FATF Recommendations, or FATF
Standards, which ensure a coordinated global response to prevent organized crime, corruption and terrorism. They help authorities go after the money of
criminals dealing in illegal drugs, human trafficking and other crimes. The FATF also works to stop funding for weapons of mass destruction.
 The FATF reviews money laundering and terrorist financing techniques and continuously strengthens its standards to address new risks, such as the
regulation of virtual assets, which have spread as crypto-currencies gain popularity. The FATF monitors countries to ensure they implement the FATF
Standards fully and effectively, and holds countries to account that do not comply.
 The Financial Action Task Force (FATF) was established in July 1989 by a Group of Seven (G-7) Summit in Paris, initially to examine and develop
measures to combat money laundering.
 In October 2001, the FATF expanded its mandate to incorporate efforts to combat terrorist financing, in addition to money laundering. In April 2012, it
added efforts to counter the financing of proliferation of weapons of mass destruction.

2. Any act or offence referred above committed abroad may be liable to penalty as if they were committed in Nepal provided that the act or offence is a
punishable offence in that foreign country where such offence were committed. (Section ….)
3. Strict prohibition to launder Assets (Section ….) i.e. What is money laundering?
 Any one committing following acts shall be deemed to have committed offence of money laundering as per this Act.
a) Conceal or disguise illicit origin of assets or
Convert or transfer, with an objective to protect the person involved in commission
of offence from legal consequences, such assets obtained from commission of offence, knowingly or
b) Conceal or disguise or exchange the true nature, source, location, disposition, if there are reasonable basis to know about such,.
movement or ownership of rights with respect to,
c) Possess, acquire or use,
 No person shall abet, facilitate, coordinate, provoke, be associated with, encourage or support any of the above acts.
 "Assets obtained from commission of offence" means any property derived from or obtained directly or indirectly through commission of money
laundering or predicate offence and it shall also include any other property and economic advantage gained or derived from such property or any property
transferred or converted into other property or advantage, in full or in part, from such property or advantage.
 Where Predicate offence means:
 Offence relating to any of the following activities, as per prevailing laws:
a) Involve in organized criminal groups or n) Murder or physical mutilation or injury x) Currency, Banking, Financial transactions,
illegal recovery or racketing to body parts, foreign exchange, negotiable instruments,
b) Destructive activities including terrorism, insurance or cooperatives,

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c) Human trafficking and transportation, o) Kidnap, illegal/ unlawful detention or y) Black marketing, consumer protection,
d) Sexual Abuse including child and all types abduction, competition and imports,
of other, p) Theft or robbery, z) Election,
e) Trafficking of narcotic drugs, q) Smuggling (Including customs, excise aa) Communication, transmission and
f) Trafficking of arms and ammunitions, or tax), advertisements,
g) Trafficking of stolen and other illegal r) Tax (Direct or indirect), bb) Frauds relating to transportation,
goods, s) Extortion, Education, Health, Medicine or foreign
h) Corruption or Bribe, t) Marine Piracy, employment,
i) Cheating, u) Market manipulation or insider trading cc) Firm, Partnership, company or any other
j) Forgery, or any offence causing negative effect entities,
k) Counterfeit currency, in securities or commodities market, dd) Land, building and real estate,
l) Piracy of products including manufacturing v) Ancient monuments, ee) Lottery, gambling or Donations,
of duplicate goods, w) Forest or wildlife or wildlife reserves ff) Citizenship, Immigration or Passports.
m) Environment, or national parks,
 Terrorism Financing,
 Any other offences prescribed by GoN by notice in official gazette,
 If any of the above offence had been carried out in abroad and if such offence is deemed to be offence in the concerned foreign country as well,
commissioning of such offences.
 Process of Money Laundering
1. Placement: The launders introduces his 2. Layering: The launderer engages in a series of conversions 3. Integration: The layered funds
illegal profits into the financial system. or movements of the funds to distance them from their source. re-enter the legitimate economy.
4. Strict prohibition to terrorism financing (Section ….) i.e. What is terrorism financing?
 No person shall, in any manner, willingly, directly or indirectly, make available or provide or collect funds, knowing that these funds will be used in
whole or in part for the execution of a terrorist act, or by a terrorist or terrorist organization.
Where,
"Terrorist Act" means following activities:
1. Activities defined as offence under section 2 (1) (a) of International Convention for the suppression of the financing of terrorism, 1999,
2. Terrifying general public by any nature or context or causing death or physical mutilation bodily injury to a civilian, or to any other person not
taking an active part in the hostilities in a situation of armed conflict in order to compel a government or an international organization to do or to
abstain from doing any act.
3. Activities defined as offence in any of the following conventions in which Nepal is a party to:
a) Tokyo Convention on Offences and Certain Other Acts Committed on Board Aircraft, 1963,
b) SAARC Regional Convention on Suppression of Terrorism, 1987,
c) Any other Conventions against Terrorist Activities which Nepal is a party to, after the commencement of this section.

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"Terrorist" means any natural person or organization who commits the following acts:
1. Commits or attempts to commit terrorist acts by any means, directly or indirectly, unlawfully and willfully,
2. Participates as an accomplice in terrorist acts,
3. Organizes or directs others to commit terrorist acts, or
4. Contributes or cooperates to the group of persons acting with a common purpose of commission of terrorist acts where such contribution or
cooperation is made intentionally and with the aim of furthering the terrorist act or with the knowledge or the intention of the group to commit a
terrorist act.
"Terrorist Organizations" means following organized or non-organized corporate bodies organizations of terrorists:
1. Directly or indirectly, unlawfully and willfully, taking part, in full or in part, in terrorist activities,
2. Abets in offence of terrorism,
3. Organize terrorist activities or direct such activities,
4. Provides help or collects funds or make contributions, with the intention that they should be used or in the knowledge that they are to be used, in
full or in part, in order to carry out terrorist activities.
 No person shall, in any manner, directly or indirectly, provide physical assistance or any make available any means for the execution of a terrorist act, or
by a terrorist or terrorist organization.
 No person shall:
 Participate as an accomplice in terrorist acts,
 Organize or direct others to commit terrorist acts, or
 Contribute or cooperate to the group of persons acting with a common purpose of commission of terrorist acts where such contribution or cooperation
is made intentionally and with the aim of furthering the terrorist act or with the knowledge or the intention of the group to commit a terrorist act.
 Any activities performed as specified in above sub sections, shall be deemed to be an offence if following conditions pertains:
a) Even if there are no terrorist activities,
b) Even if such assets or funds are not used in terrorist activities,
c) Even if such assets or funds are not related to terrorist activities,
d) Even if the place where terrorist activities is undertaken or is planned to be undertaken is anywhere in Nepal or abroad,
e) Even if the person involved in terrorist activities is in Nepal or abroad,
f) Even if assets or funds supplied for such activities had been obtained from illegal sources.
 Any one committing above acts shall be deemed to have committed offence of financing on terrorist activities as per this Act.
 Risks of money laundering and terrorist financing to banks
Reputational Risks Operational Risk Compliance Risks Legal Risks Financial Risks

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5. About Coordination Committee (Section …. & ….)

There shall be a Coordination Committee to coordinate inter-related entities and The coordination committee shall have following functions, duties and
to provide essential suggestions to the Government of Nepal in regard to the powers in addition to the functions, duties and powers mentioned
prevention of laundering of assets (money) or terrorism financing elsewhere in this Act:
Person Position a) To prepare policy for prevention of offences of ML/TF and submit
Secretary, Ministry of Finance Coordinator the policy to the Government of Nepal,
Secretary, Ministry of Law, Justice and Parliamentary System Member b) To coordinate in AML/CFT risk assessment and instruct the related
Secretary, Ministry of Home Member agency for the management and mitigation of such risks,
Secretary, Ministry of Foreign Affairs Member c) To implement or cause to implement the decision of the Government
Secretary, Office of Prime Minister and Council of Ministers Member of Nepal taken for prevention of offences of ML/TF,
Deputy Attorney General, office of the Attorney Member d) To recommend to the Government of Nepal, as per necessity, to
Secretary, Commission for the Investigation of Abuse of Member implement the standards and policies developed for prevention of
Authority offences of ML/TF by international organization of which Nepal is
Deputy Governor, Nepal Rastra Bank Member a member,
Inspector General of Police, Nepal Police Member e) To instruct concerned agencies for prevention of offences of ML/TF
Chief, Asset Laundering Prevention Department Member and to monitor whether or not the instructions are complied with,
f) To discuss the annual reports submitted by the concerned agency,
Regulator and FIU and make due coordination,
The chief of the Financial Information Unit shall act as a secretary of the
g) To perform or cause to perform other tasks in relation to prevention
Coordination Committee and the Financial Information Unit shall work as
of offences of ML/TF, as prescribed by the Government of Nepal.
Secretariat of the Coordination Committee.

6. About Financial Information Unit (FIU) (Section …. & ….)

 There shall be an autonomous Financial In addition to the functions, powers and duties mentioned at other places of this Act, the functions,
Information Unit in NRB for collection and powers and duties of the Financial Information Unit shall be as follows:
analysis of information relating to laundering of a) To receive threshold transaction report as per this Act,
assets (money) or terrorism financing. b) To receive suspicious transaction reports as per this Act,
 The Governor of NRB shall appoint the chief of c) To receive the report of currency as per this Act,
the FIU from among the first class officers, at d) To receive other relevant information in accordance with the provision of this Act,
the least, of NRB. e) To analyze suspicious transaction report, including others,
 The Office of the FIU shall be placed in NRB f) To disseminate, spontaneously and upon request, analysis and related information to the
and the NRB shall manage the staffs required for Department or other investigation agency, if it suspects money laundering, terrorist financing, or
it. other offence in its analysis pursuant to (e),
g) To provide training on ML/TF to its own staffs, regulator, reporting entity and relevant
government agencies having liability to perform under this Act,

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 On request of the FIU, GoN or any other public h) To provide feedback and guidance in relation to, including, the detection of suspicious activity,
entities may provide own employees to work in suspicious transaction report or information to the reporting entity or concerned agency,
such unit. i) To prepare and submit an annual report, on its activities including the money laundering and
 There shall be a separate budget allocated for the terrorist financing typologies, techniques, methods and trends of offences, to the Government of
FIU. Nepal through Rastra Bank,
j) To assist in supervision of RE in coordination with Regulator as per necessity so as to know
whether RE has developed mechanism to identify suspicious activity and reported or provide
feedbacks on supervision report,
k) To conclude MOU with foreign counter parts in order to exchange information upon reciprocity,
l) To carry out other functions as prescribed.
 Financial Information Unit may request any relevant information or cooperation needed to carry out its duties with a foreign counterpart that performs
similar functions, or it may spontaneously or upon request, share its information or otherwise cooperate with such foreign counter part. It shall abide the
terms and conditions mentioned by foreign counter part in relation to the information or cooperation received by it. It shall mention the prescribed terms
and condition while providing information or cooperation to foreign counter part.
 Financial Information Unit, in fulfilling its functions, responsibilities and powers pursuant to this section, may conduct the followings:
a) Request and obtain necessary additional documents, records, details or information from reporting entity,
b) Request and obtain administrative, financial or law enforcement documents, records, details or information or commercial database remained in or
with concerned agency, regulator or public institution.
 Fine up to Rs. 10,00,000.00 to reporting entities for offence of:
a) No reporting of suspicious transactions, or
b) Contravening the directions and orders under this act, or
c) Not supplying the information and documents asked for
Reporting entities means financial institutions as well as non-financial professionals or entrepreneurs.
"Financial Institutions" means any persons involved in the "Non-financial professionals or entrepreneur" means any person engaged in following
following transactions of its clients or on behalf of them: activities:
1. Accepting deposits or other amounts for repayments, 1. Casinos or internet casinos,
2. Private banking, 2. Real-estate,
3. Providing any type of credits, 3. Transactions of prescribed precious metals or things,
4. Money or value transfer, 4. Notary publics, audits or accounting professionals or similar activities on behalf of
5. Issue cheques, drfts, money orders, credit cards or client or party relating to transactions of:
other electronic instruments for payments, a) Real-estate,
6. Financial guarantees or commitments, b) Management of money, securities, etc.,
7. Business of following instruments: c) Management of savings, deposits, investments, etc.,
d) Operation or management of corporate entities or corporate legal arrangements,

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a) Cheques, bills, deposits certificates, derivatives e) Purchase or sale of organizations.

and other money market instruments, 5. Companies or trusts providing services on behalf of client or party relating to
b) Foreign exchange, transactions of:
c) Money changer, a) Incorporation, management of legal persons or legal arrangements,
d) Transferable securities, b) Partner, directors, secretary or other similar officials of such legal persons,
e) Instruments relating to commodities market. c) Establishing registered office,
8. Issuance or management of securities, d) Trustees,
9. Single or collective portfolio management, e) Share owners or beneficiaries.
10. Locker, 6. Other professionals or entrepreneur prescribed by Nepal Government by notice in
11. Underwriting, official gazettee.
12. Others.
 The FIU shall provide a reasonable opportunity to the concerned reporting entities to submit clarification.
 Reporting entities not satisfied with the punishment may appeal to the High Court within thirty five days of such punishment.
 Report to FIU (Section …)
 FIU may request any relevant information or cooperation needed to carry out its duties with a foreign counterpart that performs similar functions, or
it may spontaneously or upon request, share its information or otherwise cooperate with such foreign counter part. It shall abide the terms and
conditions mentioned by foreign counter part in relation to the information or cooperation received by it. It shall mention the prescribed terms and
condition while providing information or cooperation to foreign counter part.
 Financial Information Unit, in fulfilling its functions, responsibilities and powers pursuant to this section, may conduct the followings:
a) Request and obtain necessary additional documents, records, details or information from reporting entity,
b) Request and obtain administrative, financial or law enforcement documents, records, details or information or commercial database remained in
or with concerned agency, regulator or public institution.
 Confidentiality (Section …)
 Information, documents, details on STR, TTR and other transactions received by Financial Information Unit shall remain confidential and the analysis
of such reporting shall be used only as intelligence for the investigation of an offence or as within the limit prescribed in such dissemination.
 Every person who has duties for or within the Financial Information Unit is required to keep any information obtained within the scope of his or her
duties confidential even after the termination of his duties, except as otherwise provided in this Act or as ordered by account.
 Financial Information Unit shall develop and implement mechanisms and procedures for management and confidentiality, secure use of information
received pursuant to this Act, its use, analysis, dissemination, and exchange with foreign counterpart, and access to such information.
 Financial Information Unit may issue directives to any reporting entity or concerned agency in relation to the method, form, time and other procedures
regarding reporting, notice and information requirements pursuant to this Act. It shall publish the directives in it's website as well.

7. Asset Laundering Prevention Department (Section …. & ….)

 The GoN shall establish an Asset Laundering Prevention Department to make investigation and inquiry of offences under this Act.

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 The chief of the Department shall be a first class officer of civil service at least.
 The organizational structure of the Departmental and required number of staffs shall be as prescribed by the GoN.
 Department may request or provide for the exchange of the information of investigation with its foreign counter part carrying out the functions of
similar nature, on the basis of reciprocity, upon demand or upon its own request. It may if it considers necessary, conduct investigation of money
laundering and terrorist financing together with foreign counter part carrying out the functions of similar nature.
 The Department may develop mutual arrangement with foreign counterpart carrying out the functions of similar nature to determine the method,
terms and conditions and procedures for the exchange of cooperation.

8. Reporting entities shall not open accounts or enter into any type of transactions with benami or fictitious name. (Section ….)
9. No person shall open or operate shell banks in Nepal or by using territory of Nepal and also no financial institutions of Nepal person shall establish or
continue business relations with shell banks or entities having transaction with shell banks. (Section ….)
Where "Shell Bank/entity" means a bank or entity, which has no physical presence in the country in which it is incorporated, licensed or located, and which
is not affiliated with a regulated financial services group that is subject to effective consolidated supervision. Presence of local agent or junior level staff
does not constitute physical presence.
One of the classic tax avoiding activities can be buying or selling of Shell Companies established in tax havens to disguise actual profits. A firm can also
carry out its international operations through these types of entities and not report to its home country about the sum involved and thereby avoid tax.

10. Customer to be identified i.e. KYC (Section ….)

While performing following functions:
a) Establish business relations, Reporting entities except:
b) Open accounts, Casinos Transaction less than or equal
c) Conducting emergency transactions for amount higher than as prescribed i.e. to Rs. 2,00,000.00 per day
Rs. 1,00,000.00 or equivalent foreign currency, Precious metals or things Transaction less than or equal
d) Wire transfer, to Rs. 10,00,000.00 per day
e) Obtain additional surety if there is suspicion of inadequacy of documents,
information obtained earlier, shall obtain documents, information and details for customer
f) If there is suspicion of money laundering or financing of terrorist activities, identification and verification.
g) Transaction with high risks or high level persons
h) Other acts as prescribed.
Wire transfer means any transaction carried out on behalf of an originator (both natural persons and legal entities) through the bank by electronic means
with a view to making an amount of money available to a beneficiary person at another FI. The originator and the beneficiary may be the same person.
 Reporting entities shall obtain documents, information and details from independent reliable source for customer identification.
 Bank, financial institution or non-financial institution shall keep a separate record of documents and transactions of each customer, including date and
nature of transactions, type of account if any and symbol number.

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 For the purpose of proper identification of customers, reporting entities shall use following measures:
a) Take proper information or details about transactions or business relations or objectives or nature of business,
b) Natural Person: c) Legal Person d) Others
i. Full name, i. Name i. In case of a natural person his/her name, family
ii. Permanent and present residence address or ii. Registered address, surname, copy of citizenship or passport including
details about correspondence, telephone, email, other necessary documents evidencing his/her
iii. Date of birth and sex, website permanent residential address and profession or
iv. Father or mother’s full name iii. Nature of business business,
v. Nationality iv. Registration certificate, ii. In case of the person or firm except provided in Clause
vi. Citizenship or voter ID card or driving license or license, approvals, (i), copy of the document certifying incorporation,
passport, along with issue date, place of issue as renewals along with establishment or registration of the institution,
well as validity issue date, issuing documents that presenting name, surname, address,
vii. In case of Nepali minor, Birth certificate and authority and validity profession, business of board of directors and executive
guardian’s citizenship or voter ID card or driving v. Documents required for director or proprietor of firm or partners of partnership
license or passport, along with issue date, place registration firm,
of issue as well as validity vi. Personal details of senior iii. In case of business relation or transactions to be
viii. Person who have not obtained citizenship, officials established or made on behalf of someone else,
recommendation from municipality or rural vii. Details of shareholders documents relating to principal's identity, address
municipality, with more than 10% including power of attorney clarifying his/her business,
ix. In case of Foreign person, passport, along with shares iv. Name, surname, address of close relative, person or
issue date, place of issue as well as validity viii. Personal details of institution benefiting from the transaction of the
x. In case of Indian national without passport, account operator business relationship,
document providing his nationality, its number, ix. Name and address of v. In case of transactions made through negotiable
issuing authority, date and place of issue beneficiaries instruments, name, surname and address of the issuer
xi. In case of refugees, identification number issued x. PAN and payee of or from such instrument,
by relevant government or international entity, vi. Other documents as prescribed by the Financial
date of issue, validity and place of issue. Information Unit from time to time.
11. Identification of high level persons (Section ….)
 Reporting entities shall establish a risk management system for identification of high level persons along with their family members as well as associated
persons, who are its customers or beneficial owners or who are going to be its customers.
 Where, "High level persons" means domestic high level persons, foreign high level persons, high level persons of international organizations and
this term shall also include other persons as designated by the Government of Nepal upon the recommendation of National Coordination Committee.
 Where, "Domestic high level persons" means the President, Vice-President, Prime Minister, Chief Justice, Speaker of House of Representatives,
chairman of National Assembly, Province Heads, Ministers of Government of Nepal, Chief Minister of Province Government, Members of federal

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Parliament, officials of the constitutional bodies, Speaker of Provincial Assembly, Ministers of province government, Officials remained in the
special class or equal to special class or their senior of the Government of Nepal, judge of the Appellate Court and apex court and their senior, Co-
speaker of Provincial Assembly, Members of provincial Assembly, senior politician, central member of national political party, Mayor i.e. head and
Deputy Mayor i.e. deputy of municipalities, rural municipalities or senior executives of any institution partially or fully owned by the Government
or any person with such authority.
 Before establishing business relations, for the purpose of proper identification of high level customers, reporting entities shall use following measures:
a) Obtain permission from a high level management authority.
b) If it is found that existing customer is high level person, obtain permission as per clause (a).
c) Adopt adequate measures for identification of assets and funds of customer or beneficial owners.
d) Continuously monitor and supervise the business relations with customers.
e) Adopt methods for enhanced customer due diligence.
12. Identification of the beneficial owner (Section …)
 When establishing business relationship or conducting transaction with by reporting entity, if there is any possibility of the involvement of beneficial
ownership, it has to be identified and reasonable measures have to be taken to verify the identity of the beneficial owner. Reporting entity shall ascertain
whether a person is acting or establishing business relationship or conducting transaction, on behalf of another person. Reporting entity, while ascertaining
whether a person is establishing business relation or transaction on behalf of other, shall follow the identification and verification measures.
Where, "Beneficial Owner" means natural person who, directly or indirectly, owns or controls or directs or influences a customer, an account, or the
person on whose behalf a transaction is conducted, or exercises effective control over a legal person or legal arrangement or remains as an ultimate
beneficiary or owner of such activities.
 Reporting entity shall:
 Identify and assess risks on ML and TF in accordance with its business or profession, scope, customer, products or services, transactions or
delivery channel etc.
 Make available to the FIU, risk assessment undertaken, and also make it available to other concerned agency upon demand.
 Undertake customer due diligence measures in accordance with the level of risks as identified pursuant to this section and shall establish
appropriate policy, procedural and risk management measures, to manage and mitigate such risks and update such measures.
 Regularly monitor the execution of policy, procedural and risk management measures to ascertain whether they are in implementation or not.
 Reporting entity, while conducting risk assessment, shall:
 Take into account the findings of the national and regulatory risk assessment.
 Determine the level of risks by analyzing all relevant risk factors.
 Maintain records of conclusion of risk assessment and all related details and information.
 Conduct and update the risk assessment periodically or as per necessity.
13. Risk Based Approach and Customer Due diligence
 The approach of management which focuses on identifying and addressing potential risks of money laundering and terrorism financing is risk based
approach (RBA). The core of this approach is to creating the match between “risks and controls” by understanding of the Money Laundering/Financing

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Terrorism risks to which the banks are exposed and apply measures in a manner and to an extent which would ensure mitigation of these risks. There is
no universally accepted methodology, which prescribe nature and extent of risk based approach. It provides every bank the flexibility to manage their
ML/FT risks in their own way.
 Customer Due Diligence is the process of identifying and evaluating the customers and the assessment of customer risk as part of know your customer
(KYC) process, allowing banks to better identify, manage, and mitigate the AML related risks. The level of due diligence is based on the risk level of the
customer and thus there may be various levels of due diligence prescribed by the regulators or decided by the bank.
Currently, following are the categories of due diligence specified in NRB directive:
1. Standard/Normal Customer Due Diligence:
This is conducted for low risk customers who do not fall under enhanced and simplified customer due diligence.
2. Simplified Customer Due Diligence (SCDD): (Section.…)
 This can be conducted for customers who fall under low risk customers having characteristics as specified by NRB directive i.e. financial
institutions supervised by NRB, customers whose identity is publically available and controlled by national system and other specified by
regulator from time to time.
 Reporting entity may adopt a simplified CDD for identification and verification of a customer and transaction where the risk of money laundering
or terrorist financing is identified to be lower. However no such simplified measures of identification and verifications shall be applied if there
is suspicion of ML and TF, high risked customer or transaction.
 Assets (Money) Laundering Prevention Regulation, 2073: No simplified CDD for following customers
a) Foreign customers
b) Customer of a country in which there is noncompliance of international standards on prevention of money laundering and financing
terrorism or customer’s major clients is in such place
c) Customer is listed in stock exchange of a country in which there is noncompliance of international standards on prevention of money
laundering and financing terrorism
d) The details of beneficial owners of legal person or legal arrangements are not available publicly
e) Customer or beneficial is high level person
f) High risk or suspicious transactions
g) Annual turnover is of Rs. 1,00,000.00 or more
3. Enhanced Customer Due Diligence (ECDD): (Section ….)
 Enhanced Customer Due Diligence is conducted for high risk and medium risk customers. It refers to the additional due diligence pertaining to
the identity of the customer, source of income, nature and value of transaction and others specified by directives.
 Reporting entity shall follow appropriate measures of enhanced Customer Due Diligence (CDD) when establishing business relationship or
conducting transaction with/of following customer:
a) Customer identified as high risk. d) PEP, his family member and person associated with
b) Customer who conducts complex, unusual large transactions and unusual PEP,
patterns of transactions or which have no apparent economic or visible e) Customer who need special monitoring,
lawful purpose, f) Customer consuming high risk products and services,
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c) Transaction with customer of a country, which is internationally, identified g) Customer suspected of ML, TF or other offence,
as a deficient or non-compliant country of international AML/CFT h) Other customers as prescribed by the Regulator.
standards,
 Reporting entity shall adopt other measures as prescribed by the Regulator in the course of enhanced CDD.
 Assets (Money) Laundering Prevention Regulation, 2073: Minimum measures to be adopted for ECDD
1. Location of the business 12. Third-party documentation
2. Occupation or nature of business 13. Local market reputation through review of media sources
3. Purpose of the business transactions 14. Obtaining additional identifying information from a wider variety or
4. Expected pattern of activity in terms of transaction types, dollar more robust sources and using the information to inform the
volume, and frequency individual customer risk assessment
5. Expected origination of payments and method of payment 15. Carrying out additional searches (e.g., verifiable adverse media
6. Articles of incorporation, partnership agreements and business searches) to inform the individual customer risk assessment
certificates 16. Commissioning an intelligence report on the customer or beneficial
7. Understanding of the customer’s customers owner to understand better the risk that the customer or beneficial
8. Identification of beneficial owners of an account or customer owner may be involved in criminal activity
9. Details of other personal and business relationships the customer 17. Verifying the source of funds or wealth involved in the business
maintains relationship to be satisfied that they do not constitute the proceeds
10. Approximate salary or annual sales from crime
11. AML policies and procedures in place 18. Seeking additional information from the customer about the purpose
and intended nature of the business relationship
 Reporting entity shall conduct the identification, verification and its adequacy of existing customer having business relationship or operating accounts
till the day of commencement of Asset Laundering Prevention Act, based on the risks of the type and nature of customer and beneficial owner, business
relation, transaction, products and services, geography, delivery channel. The time for identification and verification of existing customers shall be as
prescribed by the Regulator. (Section ….)
14. Time Frame for the Identification of the Customers
Before establishing business relationship or opening an account (Section ….)
 Reporting entity shall identify and verify its customer and beneficial owner before establishing business relationship or opening an account, during the
course of business relationship or when carrying out occasional transaction.
 However, Reporting entity, may make delayed verification of identity of the customer in the following circumstances, after the establishment of business
relationship:
a) If verification may occur as soon as reasonably practical,
b) If it is impossible to verify the identification of customer due to practical reasons and verification would interrupt the normal conduct of business,
c) If risk of ML/TF is effectively managed.
 No delayed verification of a customer shall be made if following circumstances exist:
a) If the customer is PEP, or of high risk or its family members or person associated with such customer,

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b) If the activities of customer is suspicious.

Ongoing (Section ….)
 Reporting Entity is required to exercise ongoing due diligence including by carrying out the following activities:
a) To closely examine the transactions of customer in order to ensure that such transactions are consistent with the information of customer, the
customer's business and risk profile thereon,
b) To request for or examine the source of funds if it is necessary in relation to inquiry pursuant to clause (a),
c) To review and update the document, data, details or information of customers including PEP, high risk customer or of beneficial owner, their business
relation, transaction in order to ensure that are kept up- to-date,
d) To regularly monitor cross border correspondent banking and wire transfer and such customer,
e) To perform other functions as prescribed by the Regulator,
f) To perform other functions as reporting entity finds deemed necessary.
15. Identification and Verification by Third Party (Section ….)
 Reporting entity may rely on a third party in undertaking some elements of customer identification and verification in the following circumstances:
a) If reporting entity is satisfied that all identification and verification of customer is carried out as per this chapter,
b) If information of identification and verification required by this chapter will be made available to reporting entity without delay as per necessity, and
c) If reporting entity is satisfied that all copies of identification and verification data and documents will be made available from the third party upon
request, without delay.
 No identification and verification of a customer made by a third party shall be acceptable for reporting entity:
a) If such third party or institution belongs to a country identified as a deficient country in compliance of the international AML/CFT standards, or
b) If such third party or institution does not have measures in place consistent with the requirements set out in this chapter,
c) If such institutions are not under regulation, control and supervision to prevent and combat money laundering and terrorism financing.
 Ultimate responsibility for customer identification and verification under this chapter shall remain with the reporting entity relying on the third party.
16. New Technology & Non-face to face Customer or Transactions (Section ….)
 Reporting entity shall identify and assess the money laundering or terrorist financing risks that may arise in relation to the use of new or developing
technology or development of new products, business practices, delivery channels, non-face to face customer or transaction.
 Such identification and assessment of risk shall be undertaken before the launch of the new product, business practice or the use of new or developing
technology.
 Reporting entity shall take adequate measures to manage the risks identified and assessed.
 Reporting entity shall adopt policies and procedures to address risks of money laundering and terrorist financing in relation to non-face to face customer
when establishing a business relationship, conducting transaction or conducting customer due diligence with such customer.
 Assets (Money) Laundering Prevention Regulation, 2073: Customers who do not need to present themselves means the customers carrying on
following transactions:
a) Business relations established via internet, telephone, fax, post or other similar means,
b) Transactions through internet,
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c) Transactions through ATMS,

d) Telephone or mobile banking,
e) Orders or directions to be provided for transaction through fax or other electronic means,
f) Transactions through prepaid cards or other electronic means.
17. Obligations to be fulfilled by the financial institutions regarding wire transfers (Section ….)
 Financial institution, mandated to undertake wire transfer services as per prevailing laws, shall accurately identify and verify the customer before dealing
with wire transfer in any currency of any amount by obtaining the following information and details including
a) Name of the originator,
(Clarification: For the purpose of this section the term "Originator" also includes the beneficial owner transferring the money.)
b) Account number of the originator or in the absence of it, a unique reference number,
c) Originator's address or, in the absence of the address, the citizenship or national identity number or customer identification number or date and place
of birth,
(Reporting entity may not require this information if the transfer is NRs. 75,000.00 or lower.)
d) Name of beneficiary and account number or in the absence of an account number, a unique reference number,
e) Other information or details as prescribed by the Regulator.
 Above Provisions shall also be the same for wire transfers bundled into a batch file. But above provisions shall not be applicable if transfer is executed
as a result of credit card, debit card or prepaid card transaction for the purchase of goods or services provided that the credit card, debit card or prepaid
card number accompanies the transfer resulting from such transactions, or transfer between the accounts of financial institutions as mandated by prevailing
laws.
 Reporting entity may not conduct identification and verification if the originator or beneficiary is existing customer and the reporting entity has already
obtained and verified the information required by this section and there is no suspicion of ML/TF.
 Ordering financial institution shall include and ensure that information required as above are attached with the payment message throughout the payment
chain and to the receiving institution.
 Any institution working as an intermediary or receiving instituting in the chain of wire transfer in Nepal shall ensure that all information as above have
been received. If information is not received, the RE shall demand such information from the ordering institution or institution in payment chain.
 Any financial institution in Nepal, working as an intermediary or receiving institution, may suspend, deny or make payment of wire transfer in accordance
with its policy and procedures of wire transfer if the information demanded is not available.
 Any financial institution in Nepal dealing wire transfer shall develop and implement a risk based on risks policy and procedures including for monitoring,
inquiry, suspension, denial, identification of beneficial owner or beneficiary, payment of wire transfer.
 Any financial institution dealing with wire transfers shall conduct monitoring to ensure whether the information of originator and beneficiary is included
or not.
 Any financial institution dealing with wire transfers and paying amount of NRs 75,000.00 or more shall identify and verify the beneficiary.
 Financial institution engaged on wire transfer as ordering, intermediary or receiving institution shall keep all details and records of wire transfer for five
years at minimum.

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 Financial institution servicing for wire transfer shall manage the followings in regards to its agents:
a) Implementing the program of prevention and combating money laundering and terrorism financing and monitoring whether it is implemented or not.
b) Preparation of up-to-date information of agent and publish it in its website publicly.
18. Provision on Cross-border Correspondent Banking (Section ….)
 Financial institution shall undertake the following measures while entering into cross-border correspondent banking and similar relationships or
conducting transaction:
a) To identify and verify the identification of respondent institution,
b) To get adequate information on the nature of the respondent institution's activities,
c) To fully understand the nature of the respondent's business from the information pursuant to clause (b),
d) To evaluate the respondent institution's reputation and the quality of supervision to which it is subject to, including whether it has been subject to a
money laundering or terrorism financing investigation or regulatory action based on publicly- available information,
e) To evaluate the controls implemented by the respondent institution with respect to money laundering or terrorist financing and to ascertain their
adequacy and effectiveness,
f) To obtain approval from senior management before establishing a correspondent banking relationship,
g) To understand and establish an arrangement on the respective responsibilities of each party under the relationship regarding AML/CFT,
h) To ensure whether the respondent institution has conducted customer due diligence on customers in the case of a payable- through account, and has
implemented mechanisms for ongoing monitoring with respect to its customers, and is capable of providing relevant identifying information on
request,
i) Not to enter into or continue correspondent banking relations with a shell bank,
j) To satisfy itself that a respondent financial institution does not permit its accounts to be used by a shell bank.
 Where, "Correspondent Banking" means banking services provided by one financial institution (correspondent bank) to the customer of another financial
institution (respondent bank) and respondent bank means, A Bank that uses the services of another bank called a correspondent bank for performing
certain services, e.g. check clearing and collection, purchase and sale of foreign exchange etc.
 Nested or downstream correspondent banking refers to the use of a bank’s correspondent relationship by a number of respondent banks trough their
relationships with the bank’s direct respondent bank to conduct transactions and obtain access to other financial services.
19. Special Monitoring of Certain Transactions (Section ….)
 The transactions which need special monitoring by the reporting entities are:
a) All complex, unusual large transactions and all unusual patterns of transactions or which have no apparent economic or visible lawful purpose,
b) Business relationships and transactions relating to the customer and financial institution of a country internationally identified as a country that do
not or insufficiently comply with AML/CFT international standards,
c) Such other transactions prescribed by the Regulator.
 Reporting entity shall examine as far as reasonably possible the background and purpose of transactions referred above and record the conclusion drawn
therein and reporting entity shall keep the records of such measures taken for five years at minimum and shall be made available promptly if requested
by the Financial Information Unit or Regulator or a competent authority.

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20. Reporting entity shall not establish an account or continue business relationship or conduct transaction with the following customer: (Section ….)
a) Customer who cannot provide documents, information and details required for the customer identification and verification pursuant to this chapter,
b) Documents, information and details provided pursuant to this Chapter seem conflicting to the identity of the customer,
 Reporting entity shall terminate the relationship with the existing customer referred above and may inform Financial Information Unit (FIU) if necessary.
21. Responsibilities of Reporting Entity (Section ….)
 It is the responsibility of the Reporting Entity to develop and implement AML/CFT Policy and Procedures compatible with its scope, geographic coverage,
size of business, customer, transaction and risks for the prevention of money laundering and financing of terrorism and implementation of this Act, rules
and directives thereunder. Such Policy and Procedures shall include the following:
a) Internal policies, procedures and controls relating to relating to customer due diligence measures, information on transaction, verification, record
keeping, monitoring, reporting,
Contents of such policy are:
 Risk Based Approach (RBA)  Due diligence of correspondent banking relationships
 Risk Assessment and Management  Recognition and reporting of suspicious activities and transactions
 Commitment of Senior Management  Cooperation to lawful enforcement agencies
 Prohibited customers and transactions  Safe Keeping of customer’s transaction record
 Governance, Oversight, Structure and Reporting  Roles and responsibilities of board, Risk Management Committee
 Know your Customer (KYC) and Customer Due Diligence (RMC), Assets (Money) Laundering Prevention Committee, Chief
 Due diligence of Employees Executive Officer (CEO) and others.
 Due Diligence of vendors, service providers, consultants and  Others as prescribed by regulatory body.
business partners
b) Ongoing monitoring,
c) Arrangement to implement obligations as per this Act, rules and directives there under,
d) Adequate screening procedures to ensure high standards when hiring employees,
e) Ongoing and refreshment training for officers and employees,
f) Independent and effective measures to review, verify and update and make compliance,
g) Measures for detection and information of suspicious transaction,
h) Other measures to fulfill the obligations as per this Act, rules and directives
i) Other measures as prescribed by the Regulator.
 Reporting entities shall have to appoint compliance officer at management level to comply the obligation pursuant to the provision of this Act or others
rules and directives issued in accordance with this Act. Reporting entity shall ensure the following powers and necessary resources for the compliance
officer:
a) Access to any documents, records, registers and accounts necessary for the performance of his tasks,
b) Power to request and obtain any information, notice, details or document from any employee of the reporting entity,
c) Other responsibilities as prescribed by the Regulator,

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d) Other functions necessary to implement the Act, rules, and directives.

22. Record Keeping (Section ….)
 Reporting entity shall maintain following documents and records accurately and securely for minimum five years after the termination of business
relationship or from the date of transaction in case of occasional transaction:
a) All documents and other information related to the identification and verification of customer and beneficial owner,
b) All documents, records and conclusion of the analysis of customer or beneficial owner and transaction,
c) Documents and details of account and business relation of reporting entity,
d) All documents and records relating to domestic and foreign transactions,
e) Record and documents on attempted transactions,
f) Other documents and records as prescribed by regulators.
 Reporting entity shall keep some prescribed documents and records for more than five years securely as prescribed. Reporting entity shall keep and
maintain the documents and records in such a way that it shall be sufficient to reconstruct such information for the use of legal action as evidence.
 Documents and records to be maintained pursuant to this section should be kept in such way that it could be made readily available to competent authorities
upon demand. Reporting entity shall keep the report of suspicious transaction for five years.
23. Branches or subsidiaries also to follow this act (Section ….)
 Reporting entities operating in Nepal as well as abroad under same group or reporting entities with branch outside Nepal or reporting entities establishing
another entity with majority ownership shall comply this act or rules or regulations or directives issued.
For the purpose of this section majority ownership means fifty percent or more ownership.
 A group policy shall be prepared and implement with following additional contents:
a) Information exchange on customer identification and risk management for prevention of money laundering and terrorism financing.
b) Exchange information about customers, accounts, transactions, audit, group compliance, etc.
c) Monitor the secrecy and use of information exchanged.
24. Obligation of Reporting Suspicious Transactions (Section ….)
 Reporting Entity shall make a suspicious transaction report to the FIU within three days as far as possible if they find following circumstances in relation
to any customer, transaction or property.
a) If it suspects or has reasonable grounds to suspect that if the property is related to ML/TF or other offence, or
b) If it suspects or has reasonable grounds to suspect that the property is related or linked to, or is to be used for, terrorism, terrorist, terrorist acts or by
terrorist organization or those who finance terrorism.
 Reporting entity shall also submit the report of attempted transactions or activity to FIU as mentioned above.
 Suspicious Transactions means a transaction, including an attempted transaction, whether or not made in cash, which to a person acting in good faith;
 Gives rise to a reasonable ground of suspicious that it may involve proceeds of an offenses specified in law and regulations, regardless of the value
involve.
 Seeks to conceal or disguise the nature or origin of funds derived from illegal activities
 Appears to have no economic rationale or bona-fide purpose

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 Appears to be in circumstances of unusual, or unjustified complexity

 Appears to be deviated from profile, character and financial status
 Seems to be made with the purpose of evading the legal and regulatory reporting requirements
 Found to be conducted to support the activities relating to terrorism
 Guidelines for Threshold Transactions Reporting, 15th January 2014
The threshold amount may be reached by a single transaction or by a series of transactions in cash into a single account or by a single customer over a
period of one working day. It may be considered to be an aggregate transaction in cash exceeding the prescribed threshold.
Explanation:
Indications of when a series of smaller amounts combine to form a “composite” transaction that exceed the prescribed threshold are the following:
a) the period within which such a series of smaller transactions take place;
b) the fact that the series of transactions consists of a repetition of the same type of transaction e.g. cash payments or cash deposits;
c) the smaller amount transactions involve the same person or account holder, or relates to the same account.
Threshold Transactions Reporting Obligation of Different Reporting Entities
Reporting obligation to Threshold
Banks and Financial  Deposit or withdrawal of Rs 1 million or more into or out of the same account in one transaction or in a series of transactions
Institutions in one day.
 Inward or outward remittance of Rs 1 million or more into or out of the same account in one transaction or in a series of
transactions in one day or inward or outward remittance of Rs 1 million or more by a customer (in case of non-account-holder
customer) in one transaction or in a series of transactions in one day.
 Exchange of foreign currency equivalent to Rs 5,00,000/- or more by a customer in one transaction or in a series of
transactions in one day.
Money Remitter Inward remittance of Rs 1 million or more in the name of a customer in one transaction or in a series of transactions in one day.
Money Changer Exchange of foreign currency equivalent to Rs 5,00,000/- or more by a customer in one transaction or in a series of transactions
in one day.
Insurance Business  Purchase of life insurance policy with an annual premium of Rs 1,00,000/- or more, irrespective of whether paid once or
multiple times in a year.
 Purchase of non-life insurance policy with an annual premium of Rs 3,00,000/- or more, irrespective of whether paid once or
multiple times in a year.
Securities Business Purchase or sale of securities of Rs 1 million or more by a customer in one transaction or in a series of transactions in one day.
Real Estate Business Purchase or sale of real-estate property of Rs 10 million or more by a customer in one transaction or in a series of transactions
in one day.
Business of precious Purchase or sale of precious gems, stones and metal (gold, silvers, platinum, etc.) of Rs 1 million or more by a customer in one
gems, stones and metal transaction or in a series of transactions in one day.

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(gold, silvers, platinum,

etc.).
Casinos Purchase or sale of casino chips of Rs 2,00,000/- or more by a customer in one transaction or in a series of transactions in one
day.
Accountants, Auditors Purchase or sale of property or management of fund equivalent to Rs 1 million or more on behalf of a client in one transaction
and Notary Public or in a series of transactions in one day.

25. Regulation and Supervision of Reporting Entities

 Regulation, supervision and monitoring of reporting entity under this Act shall be conducted by the Regulator mandated for the regulation and supervision
of such entity pursuant to prevailing laws. The GoN, in case the event there is no Regulator mandated to regulate and supervise any reporting entity under
prevailing laws may designate an agency or Regulator to work as a Regulator of such reporting entity, upon the advice National Coordination Committee.
Regulator, in relation to the regulation and supervision of reporting entity, shall undertake the functions, responsibilities and powers set out in this Act,
in addition to the functions, responsibilities and authorities prescribed under other prevailing laws. (Section ….)
 The functions, responsibilities and powers of the Regulator shall be as follows for the purpose of this Act: (Section ….)
a) To undertake risk assessment to identify, evaluate, monitor risk in the reporting entity, its sector, periodically or as per necessity and adopt adequate
measures to effectively manage risks,
b) To require reporting entity to undertake risk assessment to identify, evaluate, monitor risk within the entity periodically or as per necessity and adopt
adequate measures to effectively manage risks,
c) To implement or cause to implement this Act and the Rules and directives issued there under,
d) To impose mandatory conditions to comply the provisions of this Act for a person or institution while registering, licensing or issuing permissions
or license for reporting entity or in the course of business,
e) To develop and implement appropriate financial and other fit and proper test requirements while registering, licensing or issuing permissions to
reporting entity and while approving those owning, controlling, or participating, directly or indirectly, in the establishment, management or operation
or business of such entity, including the beneficial owner or beneficiary of such shares of the reporting entity or cause to do so,
f) To require RE to apply the AML/CFT measures under Core Principles for prudential supervision,
g) To conduct on-site inspection, off-site supervision and monitoring of reporting entity in order to ascertain the compliance of the provisions of this
Act and rules, directives or order issued there under,
h) To issue directives and determine additional measures to REs for complying their responsibilities,
i) To conduct comprehensive monitoring of the risk assessment and ECDD carried out by the RE in relation to the customer or transactions belonging
to a country internationally identified as a non or partially compliant of AML/CFT standards,
j) To order reporting entity to make any type of documents, books, records or details and any other information available for the compliance of this
Act, and rules and directives or order issued there under,
k) To provide necessary assistance in investigation,

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l) To make special assessment of the reporting entity about its mechanisms developed for the detection of suspicious transaction, its evaluation,
reporting management on ML, TF pursuant to section 7S, or in other activities suspected or having reasonable grounds to suspect and their effective
implementation,
m) To inform FIU if any entity is found to have not submitted suspicious transaction report,
n) To train or cause to conduct training programs to the RE on AML/CFT,
o) To carry out other functions as prescribed.
 Regulator may issue necessary order or directives or guidelines to reporting entity to implement or cause to implement the tasks under this Act and the
provisions of international standards on AML/CFT. It may enter into cooperation and sharing arrangements with domestic or Foreign Regulators regarding
the regulation and supervision of reporting entities operating under the same group and for the exchange of relevant supervisory information.
 Financial Regulator may make necessary arrangements with domestic or similar Foreign Regulators regarding the system of regulation and supervision,
and exchange of regulatory and supervisory information including other cooperation for AML/CFT system.
 Regulator may take any or all of the following actions or sanctions against a reporting entity failing to comply with any provisions of this Act, Rules, or
Directive issued there under or order. (Section ….)
a) To issue written reprimand and warnings,
b) To impose fines as follows on the basis of gravity of violation of this Act, rules or order or directives issued there under,
Casinos Rs. 10,00,000.00 to Rs. 5,00,00,000.00
Financial Entities Rs. 10,00,000.00 to Rs. 5,00,00,000.00
others Rs. 1,00,000.00 to Rs. 1,00,00,000.00
c) To impose full or partial restriction on the business, profession or transaction,
d) To suspend the registration or permission or license,
e) To revoke the permission or license or cancel the registration,
 Regulator may impose other appropriate sanctions under prevailing laws if the sanctions provided as above are not sufficient for the violation of the
provisions of this Act or Rules or directives or order thereunder. The imposed sanctions shall be effective, proportionate and dissuasive.
 Reporting entity shall take appropriate action against a staff or an official if it faces regulatory actions or sanctions under this Act due to the activities of
such staff or official as per its law or prevailing laws.
 It shall provide reasonable opportunity of clarification to reporting entity before taking regulatory action or sanction pursuant to this section.
 A reporting entity, which is not satisfied with the action or sanction of the Regulator, may appeal to the related High Court within thirty-five days.

26. Provisions relating to investigation and Inquiry

a. Complaint (Section ….)
 Any person, who has knowledge that somebody has committed, is going to commit or is committing any act constituting money laundering and
terrorist financing and predicate offences, may submit a complaint, application, information or notice to the Department in writing or oral form
and the Department shall register complaint, application, information or notice if it is received in writing and the Department shall transcribe the
oral complaint, application, information or notice it receives and then register it.

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 If anyone complains with an intention to keep his name confidential, a code as designated by the Chief of the Department should be used in place
of the name of the complainer while registering such complaint.
 Information should be officially registered as complaint if any staff of the Department knows by any means that certain person(s) has committed
or is committing or is going to commit money laundering or terrorist financing.
 Complainer may be asked to endorse the complaint if so required. If the complainer endorsing requests for confidentiality of name, address, it
shall be kept confidential.
b. Preliminary Inquiry or Investigation (Section ….)
 The chief shall make or cause to make preliminary inquiry if he receives complaint or information. The chief may designate any of his staffs to
conduct preliminary investigation and provide adequate time. The officer designated for the preliminary investigation may exercise the powers
of the investigation officer available in this Act.
c. Appointment or Designation of Investigation Officer (Section ….)
 The chief, if he finds it reasonable to make an investigation of a case from the preliminary inquiry or investigation, may conduct investigation
himself or appoint or designate an officer of the Department or of other Government agency or of public institution for the investigation of the
case.
 The chief shall make prior consultation with the head of other Government agency or of public body before appointing an officer of such agency
as an investigation officer.
 The Chief may handover a case to an investigation authority for investigation if he finds that such authority is more appropriate to investigate
such offence.
 The chief may, if he finds that the nature of offence demands two or more than two agencies or public body, may form a joint investigation team,
with consultation with such agency or body.
 Investigating authority entrusted as above or joint investment team formed as above may also use all the powers of investigation officer available
under this Act.
 Investigation officer shall take oath of office before commencing the investigation in a prescribed form.
d. Functions, Duties and Powers of the Investigation Officer (Section ….)
a) To order any government agency, regulator, reporting entity and related person to provide documents, records, statements, notices and/or
information related to the offence of money laundering and terrorist financing,
b) To conduct a search of any government entity, regulator, reporting entity, a person and any other place at which any document, write-up, material,
facts, information, or instruments that may constitute evidence of an offence of money laundering and terrorist financing is reasonably believed
to be located, and to seize such document, write- up, material, facts, information, or instruments or property or instrumentality related with the
offence, provided that a written receipt in a prescribed form is given to the concerned person or official for all items seized in the course of the
search,

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c) To arrest a person and detain a person, as per prevailing laws, if the investigation officer has reasonable grounds to believe that such person
accused of or suspected of involving in money laundering or terrorist financing may abscond or destroy or hide evidences or likely to obstruct or
create adverse influence in the investigation process,
d) To require any person with information or reasonably believed to have information related to the offence of money laundering or terrorist
financing to provide information, statement or supplementary statement, If the person while giving statement or supplementary statement is found
it necessary to provide additional information, he can be released on investigation officer's own undertaking by taking a written commitment or
ask for bail and in case of inability to provide bail, detain with the consent of the court,
e) To trace, identify and evaluate the properties and instrumentality fully and effectively in order to freeze or seize such property or instruments,
f) To write to Financial Information Unit if there is reasonable ground to believe that foreign Financial Intelligence Unit may have any information,
g) To carry out the other functions as prescribed.
h) The chief may fine up to Rs. 500,000.00 against a person disobeying the order given in the course of investigation, upon the report of the
investigation officer.
e. Keeping Under Custody for Investigation (Section ….)
 A detention warrant shall be provided to a person accused of or having reasonable grounds to suspect that he is involved in the offence of money
laundering and terrorist-financing before detaining him. The investigation officer shall present a person detained in money laundering and terrorist
financing offence within 24 hour of arrest, except the time for arrival, and may be detained further upon the order of the adjudicating authority.
 The Investigating officer shall, while producing the suspect for remand, clearly mention the charges against the detainee, reasons and grounds
thereon, description of suspect's statement, if any, and the reason to detain the suspect for investigation. If remand is requested for investigation
and inquiry, the adjudicating officer may, after reviewing the concerned documents and whether or not the investigation and inquiry has been
satisfactory, remand the suspect for ninety days, not exceeding thirty days at a time.
 In case remand is requested, the detainee may petition before the adjudicating officer thereby stating reasons and grounds for him not to be
remanded.
 The investigation officer shall give prior information to the Chief of the Department before arresting, detaining or requesting the adjudicating
authority to extend the detention time of a person pursuant to this Section. However, if a person is required to be arrested right away, the
investigation officer should inform the Chief as soon as possible after arresting such person.
f. Order for Freezing Assets (Section ….)
 The investigation officer may freeze or seize the following property or instrumentality or property or instrumentality suspected of being related
with such property or instrumentality of anyone in the course of investigation, regardless of persons whoever owns, possesses, entitles, or has
any kind of interest in:
a) Laundered property,
b) Instruments used or intended to be used in the commission of the offence of money laundering,
c) Property related with the offence of terrorist financing,
d) Property used or intended to be used in the offence of terrorist financing, or property used or intended to be used or allocated for the use
in terrorist act or by (for the use of) individual terrorist, terrorist group or terrorist organization,
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e) Instrumentality used or intended to be used in the offence of terrorist financing.

 The investigation officer shall freeze or seize the property of corresponding value of the person suspected of engaged in ML/TF if it is not possible
to freeze or seize the property or instruments, due to the disposal, concealment, use or consumption of such proceeds or instrumentality or by any
other reason that disables to freeze or seize.
 The investigation officer may apply following measures while freezing or seizing the property or instruments:
a) To self seize such property or instrument or through the concerned government agency,
b) To order concerned agency to freeze such property or instrumentality ex-parte and without prior notice to the person related.
 The investigation officer may issue freezing order against the property of the person, under the investigation of ML/TF, who does not present
before him within the time given or as delivered till such date such person presents oneself.
 The concerned agency or institution shall immediately freeze if it is asked in writing to do so pursuant to freeze in such a way that such property
or instrumentality could not be transferred, mortgaged, sold, distributed, transacted or taken any benefit by anyone.
 The investigation officer shall give prior information to the Chief before giving order to freeze or seize the property or instruments.
Provided that, if such property or instrumentality is required to be frozen or seized right away, the investigation officer should inform the Chief
as soon as possible after such freezing or seizing.
 The investigation officer shall give notice of freezing or seizing of the property to the person whose property or instrumentality is frozen within
3 days of such action.
 Person who is dissatisfied by the act of freezing or seizing made pursuant to this section may submit a complaint to the court for the release of
such property or instrumentality.
 The court may, upon the receipt of complaint and if the property or instruments frozen or seized is found to be belonging of the complainant,
release such property or instrumentality if it finds the following circumstances:
a) If the complainant is not found to be involved in any offence of money laundering or terrorist financing,
b) If it is found that such property or instrumentality is not related with the offence of money laundering or terrorist financing or there is no
ground to believe so, and
c) If the property or instrumentality is not found to be related with other offence committed by the complainant.
 Notwithstanding whatever written in the prevailing law, investigation officer shall be vested with powers to prevent or void any contractual or
other liabilities going to be created or created by any person that prejudices in the capacity of freezing, seize or confiscating the property and
instrument that is subject to confiscation.
 The investigation officer shall submit a report of any freezing or seizing of the property made to the court within 3 days of such action.
 The court may issue appropriate and necessary order upon the report as above.
g. Request to the Concerned Country (Section ….)
 The Department, if it finds in the course of investigation that any property or instruments of any person related with money laundering or terrorist
financing is in a foreign country, shall immediately request to freeze such property or instruments pursuant to the prevailing laws. It shall include
the more possible information about the place of the property or name of banks or financial institutions of such person.

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h. Monitoring Order (Section ….)

 The investigation officer may issue a monitoring order to a reporting institution directing it to provide information to the Department in respect
of transactions of a person under the investigation of money laundering or terrorist financing offence with a form to report. While issuing
monitoring order the deadline shall be given no more than three months, in general.
 A reporting institution served with a monitoring order shall regularly monitor the transaction of the person and report it to the department regularly
in accordance with the terms of the order.
 Notwithstanding whatever written in prevailing laws, the investigation officer may order the concerned entity to hold the passport or travel
document of the person accused of in the offence of money laundering or terrorist financing. The concerned entity shall not issue a passport or
travel document to such person or it shall take control of such document if it is ordered to take control.
i. Filing of Case (Section ….)
 The Chief shall, after the completion of the investigation on the offence of money laundering or terrorist financing, submit a dossier of evidence
including his advice to the government attorney for the latter to decide whether to file the case or not. The Department shall, if it receives
concerned government attorney's decision to file a case, file the case before the court as prescribed by the Government of Nepal through a notice
in Nepal Gazette.
 There shall be no limitation to file a case relating to the offence under this Act. The Government of Nepal shall be the plaintiff in the case relating
to an offence under this Act.
 If any act constituting an offence under this Act is also punishable under any other existing law, one may also be charged under such law. If it is
evident from investigation of an offence under any existing law that one has committed an offence under this Act, the entity or officer conducting
investigation and inquiry of such offence shall inform the same to the Department.
 The Department shall inform other related investigation agency if it finds in course of its investigation that there is a link or possibility of filling
another case or punishment under other prevailing laws. It shall send all available information and complaint or file comprising the collected
evidences, documents and conclusion in the course of investigation of money laundering or terrorist financing but not related with the offence of
money laundering or terrorist financing to other related investigation agency under prevailing laws.
 No Investigation Officer or any staff or person involved in the investigation and inquiry shall, unless the prevailing law otherwise requires, breach
confidentiality of any matter or document s/he encounters with during investigation and inquiry or while performing his/her duty.
 Any organized institution established under the prevailing laws or civil servant shall be deemed to be automatically suspended for a period he/she
is detained as per this Act or until the case filed against him/her is settled.
j. Source of the Property to be Proved (Section ….)
 Any person prosecuted under this Act for the offence of money laundering and terrorist financing after investigation shall require to provide the
source of his property, if it is found that his property is unbelievable or he is living an unbelievable life style or he has unbelievably donated,
gifted, granted or contributed or loaned to other more than his capacity in comparison to his income. Property failed to provide source shall be
confiscated.

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k. No Obstacle to Prosecute (Section ….)

 It shall not be an obstacle to investigate, prosecute or punish a person on an offence of money laundering only due to the reason that no
investigation has been conducted on predicate offence or not prosecuted even after the investigation or nor convicted on predicate offence or the
charge of predicate offence has been dismissed.

27. Provisions related to currency and bearer negotiable instruments

a. Declaration and Enquiry of Currency and Bearer Negotiable Instruments (Section ….)
 Any person entering into or leaving Nepal, who is in possession of currency or bearer negotiable instruments or who arranges for the transportation
of such items of NRs or its equivalent in foreign currency by cargo, courier, postal service or any other means of the amount or more as prescribed
by the Rastra Bank shall make an accurate written declaration as prescribed. While making declaration, a person who is in possession of such
currency or BNI shall declare it before the customs and a person who is sending or receiving such items by cargo, courier, postal service or any
other means, it shall be declared before such agency.
 A cargo, courier, postal service or any other means providing such service shall submit the declaration of currency or BNI to the nearest custom
officer in a prescribed format. Custom officer may require disclosure of items declared or open the cargo, parcel or envelop submitted to him, if
he suspects on the declaration or information submitted.
 Custom officer may inquire about the origin and intended purpose of currency or BNI being carried into or out of Nepal in the following
circumstances:
a) If he suspects the declaration is not made or such declaration is false, or
b) If there are adequate reasonable grounds to suspect that it is related with an offence.
 Custom officer shall confiscate the currency or BNI if he finds such currency or BNI undeclared or falsely declared or related with an offence
and also fine equal to such amount. Custom officer shall have to notify the reasons of confiscation to the concerned person.
 Custom officer shall send a suspicious transaction report to FIU and inform the concerned investigation agency immediately, of the currency or
BNI suspected as above. The Department of Customs shall send the details of declaration made pursuant to section 29A to Financial Information
Unit every month.
b. Commodity under the Customs Act (Section ….)
For the purpose of this Act, currency or bearer negotiable instruments shall be deemed to be an item under the definition of commodity (Malbastu)
under the prevailing customs laws. Other provisions regarding declaration of currency or BNI, inquiry, search, seizure, confiscation, action or appeal
pursuant to this chapter shall be as the provisions of the prevailing Customs laws.

28. Provisions related to freezing of property and funds

a. Information of Terrorist, Terrorist Group or Terrorist Organization (Section ….)
 The Ministry of Foreign Affairs shall without delay publish the list of terrorist, terrorist group or organization and of those engaged in proliferation
of weapons of mass destruction designated under the provisions of the resolutions of United Nations Security Council in its website and submit
the same to the Ministry of Home Affairs by electronic means.

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 The Ministry of Home Affairs shall, without delay, issue a freezing order against the properties or funds of terrorist, terrorist group or organization
designated in the above list in order to freeze such properties or funds immediately in accordance with this chapter.
 The Ministry of Home Affairs shall immediately publish its order in its website.
 The Ministry of Finance, Regulator, concerned agency, FIU, reporting entity or legal person or natural person shall ensure that they are aware of
the updated lists of person, group or organization regularly consulting the lists.
b. Enlisting as a Terrorist, Terrorist Group or Terrorist Organization (Section ….)
 The Ministry of Foreign Affairs, if it receives a request from a foreign country in order to freeze the properties or funds of a person, group or
organization related/involved with or suspected of being a terrorist or terrorist group or organization, shall send such request to the Ministry of
Home Affairs without delay.
 The Ministry of Home Affairs shall make necessary inquiry against a person, group or organization involved or suspected of involving in terrorist
act either upon the receipt of request of Ministry of Foreign Affairs or of Nepali or foreign citizen, group or organization involved in or having
reasonable grounds of suspicion of being involved in terrorist act inside or outside of Nepal, in its own initiative.
 The Government of Nepal may designate a person, group or organization as a terrorist, terrorist group or organization, if it finds or has reasonable
grounds to believe that such person, group or organization is involved or going to be involved in terrorist activities or of section 4 or in any
terrorist act pursuant to prevailing laws in Nepal or any other country under prevailing laws and issue freezing order against the properties or
funds of such person, group or organization.
 The Government of Nepal may delist a person, group or organization listed if it does not find grounds for keeping such person, group or
organization into such list.
 The Ministry of Home Affairs shall, if any person, group or entity is delisted by the Government of Nepal, immediately publish its notice in its
website.
c. Freezing of Properties and Funds (Section ….)
 Natural Person, legal person, concerned agency or reporting entity shall immediately and without delay and without prior notice, freeze the
properties or funds of a person, group or organization listed pursuant to section 29E & 29F and of person, group or organization engaged or
financing in the proliferation of weapons of mass destruction.
 While freezing the properties or funds all the following properties or funds shall be frozen without delay:
a) All properties or funds belonging to or wholly or jointly, directly or indirectly, owned or possessed or held or controlled by such person,
group or organization,
b) All properties or funds derived or generated from the property or funds pursuant clause (a),
c) All properties or funds of a person, group and organization acting on behalf of, or at the direction of such person, group or organization.
 Properties or funds frozen pursuant to this section shall be frozen in such a way that such properties or funds shall not be, could not be transferred,
mortgaged or sold or distributed or transacted by anyone, except in the execution of the provision of this Act and rules there under.

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 Natural or legal person, concerned agency and reporting entity shall make necessary management that the such properties or funds or other
economic resources or financial or other benefits frozen shall not be, directly or indirectly, available or in use of or be beneficial to the individual,
group or organization designated under sections 29E and 29F.
 Natural or legal person, concerned agency shall submit the report of such freezing to the Ministry of Finance and reporting entity to the Regulator,
within three days of freezing.
 Regulator shall submit the detail of the freezing of the property or funds received to Ministry of Finance within three days of receipt.

d. Delisting or Defreezing the Properties and Funds (Section ….)

 Any person, group or organization designated in the list of section 29E, and 29F may submit an application to the Ministry of Foreign Affairs
and Ministry of Home Affairs respectively. Any person, group or organization affected by the freeing of properties or funds or on other matters
due to the order under section 29G may submit an application to the Ministry of Foreign Affairs if the designation has been made pursuant to
section 29E and to Ministry of Home Affairs if the designation has been made pursuant to section 29F.
 The concerned Ministry shall make an inquiry if it receives an application pursuant to above and the Ministry of Foreign Affairs shall submit it
to the UNO if the applicant is under the list of section 29E. The Ministry of Home Affairs shall submit it to the concerned foreign country through
the Ministry of Foreign Affairs if the applicant is under the list of section 29F.
 The Ministry of Home Affairs shall make an inquiry if it receives an application pursuant to above from the person, group or organization
designated upon it own initiative under the list of 29F. It may delist such person, group or organization if it does not find any ground to keep
applicant under the list of section 29F and shall make defreezing order for his frozen properties or funds.
 Other provisions including the effective implementation of United Nations Security Council Resolutions including listing o rdelisting of terrorist,
terrorist group, terrorist organization, listing or delisting of terrorist, terrorist group, terrorist organization pursuant to section 29F defreezing
properties or funds frozen pursuant to section 29G, appealing against the listing or freezing order, proper protection of bona-fide third party,
providing minimum properties or funds for the subsistence of person whose property or funds is frozen shall be as prescribed.
e. Requests to Concerned Country (Section ….)
The Ministry of Home Affairs shall immediately send the list of person, group or organization listed pursuant to section 29F through the Ministry of
Foreign Affairs with a request to freeze properties or funds of such person, group or organization if it finds that their properties or funds may be
located in another country. The Ministry of Home Affairs shall send the name of person, group or organization if it is delisted through the Ministry
of Foreign Affairs in order to defreeze property or funds that are frozen.
f. Punishment for Violations (Section ….)
 Regulator may impose sanction pursuant to section 7V if it finds any reporting entity is not freezing the properties or funds pursuant to section
29G.
 Departmental action shall be taken against responsible officials of the concerned agency not freezing the property or funds pursuant to section
29G.
 The Ministry of Home Affairs may fine up to one million rupees to a natural or legal person violating the section 29G.

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 Notwithstanding whatever written above, case of TF may be initiated or filed against a natural person, legal person or responsible official of
concerned agency or reporting entity who does not freeze the properties or funds with an intention to support the commission of offence of ML
or TF, or to terrorist, terrorist group or organization or terrorist acts.
 The provisions under this Act, for tracing properties and instrumentality, freezing, seizing, investigation and confiscation of the properties or
funds of terrorist, terrorist group or organization and other related matters, s shall be applicable to offences under this chapter if so required.

29. Offence and Penalty

Section Offence Fine
30 a) The conversion or transfer of funds, by any person who knows, should have known or suspects that Imprisonment: 2 to 10 years and
such funds are the proceeds of crime, for the purpose of concealing or disguising the illicit origin of Fine: equal to the two times of claimed
such funds or of assisting any person who is involved in the commission of the predicate offence to amount (Bigo) if such an amount is
evade the legal consequences of his actions. ascertainable
b) The concealment or disguise of the true nature, source, location, disposition, movement or ownership
of or rights with respect to funds by any person who knows, should have known or suspects that such
funds are the proceeds of crime.
c) The possession, acquisition, or use of funds by any person who knows, should have known or suspects
that such funds are the proceeds of crime.
Abet, facilitate, coordinate, provoke, be associated with, encourage or support any acts specified above half of the punishment imposed to the
main offender of the offence.
In any manner, directly or indirectly, and willingly, provides or collects funds, support, or attempts to do so, Imprisonment: 3 to 20 years and
in order to use them or knowing that these funds will be used in whole or in part for the execution of a Fine: equal to the five times claimed
terrorist act, or by a terrorist or terrorist organization. amount (Bigo) if such an amount is
ascertainable and
Fine: 1,00,00,000.00 if the amount is not
ascertainable
a) trade in activities specified above. half of the punishment imposed to the
b) In any manner, directly or indirectly, provide physical assistance or any means for the execution of a main offender of the offence.
terrorist act, or by a terrorist or terrorist organization.
c) Participate as an accomplice in terrorist acts.
d) Organize or direct others to commit terrorist acts, or
e) Contribute or cooperate to the group of persons acting with a common purpose of commission of
terrorist acts where such contribution or cooperation is made intentionally and with the aim of furthering
the terrorist act or with the knowledge or the intention of the group to commit a terrorist act.
In case any bank, financial institution or non-financial institution has committed offence, the official or staff of such bank, financial institution or non-
financial institution who is identified as perpetrator of the offence or in case such perpetrator is not identified, the official in charge of the institution
at the time of commission of the offence shall be liable to penalty.

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If a person holding a public post or official, chief or staff of any bank, financial institution or non-financial institution has committed an offence.
Fine: 10% of additional punishment to the punishment referred above.
Offence by any legal person Any or all of following penalties:
a) Five times of punishments prescribed above d) Make good of compensation
b) Prohibit public procurement for specified period e) Cancel registration or license
c) Prohibit purchase of goods or service for specified period f) Liquidate such legal person
Other offences than mentioned above Fine: equal to claimed amount (Bigo) if such an amount is ascertainable and
Fine: 10,00,000.00 if the amount is not ascertainable
31 Not maintaining secrecy as Imprisonment: 1 to 4 months or Fine: up to Rs. 1,00,000.00 or both.
prescribed in the act
32 Offence of concealing or destroying Imprisonment: 1 month to 3 months or Fine: Rs. 50,000.00 to 1,00,000.00 or both in accordance with the degree
evidence related to acts of offence committed and person assisting for committing such act shall be punished half of such punishment.
33 Creates obstacles in the proceedings Imprisonment: up to 6 months or Fine: up to Rs. 5,000.00 or both based on the report of investigation Officer.
of investigation and inquiry
33A If it is proved that complaint was Fine: up to Rs. 10,000.00
false and was filed just to harass
others
34 Any assets obtained from an offence  Any property or instrument or goods, irrespective of who possess it, used in the offence under this Act shall be
under this Act and assets confiscated.
accumulated thereof and assets  Provided that, such property, instrument or goods shall be returned to its owner if such property, instrument or
utilized for committing such offence goods was used in the offence without the consent of the owner or if the owner had no knowledge of its use in
shall be confiscated. the offence in such a manner that the offender shall be made liable for such liability if it is so proved.

30. Other Miscellaneous Provisions

a. National Risk Assessment (Section ….)
 National risk assessment of money laundering or terrorist financing or predicate offence shall be conducted periodically or as per necessity.
 The Implementation Committee shall be responsible to conduct such national risk assessment.
b. Property or Instrumentality to Be Released (Section ….)
 In case the property or instruments frozen proves to have no criminal origin, the Department if case has not been filed, or the court hearing the
case if the case has been filed, shall order the concerned authority which has frozen the property or instrumentality to release such property or
instrumentality and the concerned entity shall release such property or instrumentality upon such order.
c. Not to be Liable for Providing Information (Section ….)
 No staff or official of RE is supposed to have violated the professional or financial norms prescribed under other prevailing laws if such act has
been carried out in the course of discharging duties under this Act up to the level of performance mandated under this Act.

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 No criminal, civil, disciplinary or administrative action or sanction shall be taken against a government agency, reporting entity or any of their
official or staff who in good faith submit reports or provide report, document, information, notice or records in accordance with the provisions
of this Act, rules and directives issued thereunder as a breach of secrecy provision under prevailing laws or contractual, administrative or
regulatory liability.
d. Provisions Relating to Delivery of Notice (Section ….)
 A summon to be served to a foreign national in connection with an offense under this Act shall be served to the office or representative of such
person in Nepal, if any, and the notice so served shall be deemed to have been duly served.
 In case no office or representative as stipulated above exists, the notice shall be served to the main place of business of such person or his/her
permanent residential address or the mailing address if provided by him/her in course of business, through telex, tele-fax or other means of tele-
communication or through registered mail and the summon so served shall be deemed to have been duly served.
 It shall not bar to serve the summon to the foreign national as per the specific provision contained in the treaty which Nepal or the Government
of Nepal is a party to, if there is any.
e. Publication of Notice (Section ….)
In case a notice or summon cannot be served to any person as per this Act or any other prevailing law because the address of such a person is not
identified or because of any other reason and a report thereof is received, a notice containing a brief detail of the case shall be published in national
level newspaper (in English daily in case of foreign national) at least twice requiring the concerned person to appear within thirty days before
investigating authority or adjudicating authority where charge has been filed. If such notice is so published, it shall be deemed to be duly served to
such person, notwithstanding anything contained in prevailing laws.
f. Waiver of Penalty (Section ….)
 The investigation officer may present an accused person cooperating with the investigation and inquiry proceedings as his witness and may
provide such person with full or partial waiver of penalty in the case initiated under this Act.
 However, notwithstanding anything mentioned in this Act or in prevailing laws a law suit may be reregistered against such person if his
cooperation could not be corroborated by other evidence or if such accused makes statement before the adjudicating officer against the
cooperation extended to the investigation and inquiry officer.
g. Tipping Off and Related Provision (Section ….)
 No reporting entity, nor its official or staff shall disclose to its customer or to any other person that a following report, document, record, notice
or information concerning suspected money laundering or terrorist financing or predicate offence has been or is being submitted:-
a) Report of suspicious or threshold transaction,
b) Report of ongoing monitoring order pursuant to section 19A,
c) Any document, record or information provided to the Financial Information Unit, investigation officer or investigation authority pursuant
to prevailing laws or regulator,
d) Other details or information to be provided by reporting entity under this Act, rules and directives there under,
e) Individual introductory detail of an official or staff providing report, document, document, notice or information from (a) to (d).

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 The Department, investigation officer or staff of the Department, investigation authority pursuant to prevailing laws shall not disclose any
information about the personal or institutional detail of the reporting institution, Financial Information Unit or their official or staff submitting
a notice or report or document, record or information that will identify or is likely to identify the RE or FIU and a person or official reporting or
disseminating in relation to the offence of money laundering, terrorist financing or predicate offence to anyone.
 No information shall be disclosed even in judicial proceedings that discloses or may disclose the introduction of official or staff or agency or
institution stipulated above. Following authority may impose following sanction at each event of violation of the provision of this section as
follows:
a) Regulator to fine up to one million rupees to the bank and financial institution or to casino,
b) Regulator to fine up to two hundred thousand rupees to other designated non-financial business and profession,
c) Reporting entity to take departmental action to its official or staff under their own laws,
 Notwithstanding whatever written in the prevailing laws of service, concerned authority to take departmental action against the Chief,
investigation officer or staff of the Department or investigation officer pursuant to prevailing laws.
 Notwithstanding whatever written in the prevailing laws of service, departmental action to the head and staff of Financial Information Unit.
h. Confidentiality Provision (Section ….)
 Notwithstanding whatever written in prevailing laws, no document, record, detail, notice or information stated to be remained confidential under
the prevailing laws shall be confidential to the Department or Financial Information Unit for the performance of the duty under this Act.
 The concerned agency, official or person shall make available the document, record, detail, notice or information if they were asked by the
Department or Financial Information Unit specifying the objective.
i. Nominal Expenses may be allowed (Section ….)
Where all asset of an individual is frozen in course of investigation and inquiry of the offence of ML/TF or in course of the proceeding of the case
and there is no other means or source of livelihood for the concerned person or his/her dependents, the court may order the department to release the
portion of the asset required for basic condition of livelihood. The department shall act upon the order of the court.
j. Reward (Section ….)
Any person who files complaint or provides information and cooperates with the investigation or evidence collection shall be entitled to receive ten
percent of the claimant value or rupees one million, whichever is lower, if allegation is established. In case the persons are more than one, such
amount shall be distributed proportionately.

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