In an effort to make property deals more transparent and to stop the use of illegal money, the Department of Land Management and Archives in Nepal has introduced new rules. From now on, both buyers and sellers must submit their bank statements when buying or selling land or buildings.
This rule was issued on Tuesday under the directive titled “Directive on the Prevention of Money Laundering and Financing of Terrorist Activities 2082.” It is part of Nepal’s plan to get off the Financial Action Task Force’s (FATF) grey list. Nepal has been given two years to fix certain issues, and a national action plan has already been prepared.
According to the new rule, proof must be provided that the money used in property deals is directly transferred from the buyer’s bank account to the seller’s bank account.
If the property deal is between Rs. 10 lakh and Rs. 50 lakh, the payment must be done through the banking system, like online transfers or cheques. If the deal is more than Rs. 50 lakh, the payment must be made either through an electronic bank transfer or a special cheque called a “Good for Payment” cheque, made out in the name of the seller.
Also, if the buyer submits a sales agreement (bainapatra) certified by the local government and the amount is more than Rs. 10 lakh, they must show proof that the payment was made via electronic transfer to the seller’s bank account. This proof has to be submitted along with the agreement.
In addition, if someone makes property transactions worth more than Rs. 3 crore in a single day, the Nepal Rastra Bank (NRB) must be informed.
These steps are part of a larger plan by the government to ensure that money used in real estate is clean and not used for illegal activities like money laundering or funding terrorism
