KATHMANDU, Nov 22: The government in a bid to control possible money laundering via trading of precious ornaments has started vigilance of the sector.
Amid a growing concern over the suspicion of increasing money laundering through transaction of precious metals and stones, the tax authority has come up with a list of rules to be followed by traders and general people. Many traders have been found investing in valuable metals like gold, silver and platinum and the valuable stones like diamond, quartz, iridium, palladium and aquamarine, among others for safe landing of their illegally earned money.
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Issuing directives last week, the Inland Revenue Department (IRD) has made it mandatory to make transactions through the banking system if the amount crosses Rs 1 million. The transaction must be made through the bank account of the buyers or their family members.
The organizations involved must use their regular bank account to buy/sell the valuable metals and stones. The transaction details must be submitted in the designated format to the Financial Information Unit of Nepal Rastra Bank.
Likewise, the invoice of trading of the precious metals and stones cannot be issued in the name of the artificial persons. According to the IRD, those found trading with anonymous entities will face cash penalties between Rs 100,000 and Rs 10 million.
Similarly, the companies not abiding with other specified norms might be penalized up to Rs 5 million, while facing the scrapping of their operation licenses.
