. The government has promulgated the Money Laundering (Third Amendment) Ordinance, 2083 to further strengthen the legal framework related to prevention of money laundering. President Ram Chandra Poudel issued the ordinance on the recommendation of the Council of Ministers in accordance with Article 114 (1) of the Constitution.

The ordinance has, for the first time, explicitly brought financial crimes, revenue leakage, customs evasion, tax evasion, securities market irregularities and insider trading under the purview of money laundering offences.TAG_OPEN_p_14

According to the amendment made to Section 13 of the Principal Act, smuggling and tax related offences, direct and indirect tax evasion,

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Market manipulation and insider trading, currency, banking, financial transactions, foreign exchange, exchange rights and insurance irregularities adversely affecting the securities and commodities market have been added to the list.  The Department will proceed with the investigation accordingly if information is received that the amount earned from these crimes or is involved in money laundering.

The ordinance amends Section 22 of the principal act to clarify the structure of litigation and representation.TAG_OPEN_p_12 In the case of departments, the Office of the Government Attorney will file cases in other areas designated by the government in the gazette while the concerned District Government Attorney’s Office will handle the cases.

Provision for filing cases in the Special Court Added

The ordinance has also added the provision that the government attorney can file a case at the Special Court if an offence related to money laundering is found in the investigation.TAG_OPEN_p_11 The government believes that this will bring clarity on case liability, prosecution process and implementation. According to the new provision, the department can demand prosecution of the related offense even if it is not prosecuted for any related offence during the investigation. This is expected to help make the prosecution process more effective and comprehensive.

According to the government, this ordinance has taken an important step towards making Nepal’s financial system strong, transparent and in line with international standards.TAG_OPEN_p_10 It has also sent a strong message to stop efforts to launder illicit money and to curb financial misuse.