KATHMANDU, Sept 28: The Ministry of Finance (MoF) has said it has started critical investigations against political leaders and individuals who are reported to have amassed illegally earned cash at their residences and elsewhere.
Issuing a press release on Sunday, the MoF stated that there is no restriction on keeping any amount of hard currencies, provided the individual concerned can furnish the legitimate sources of their earnings. “However, the investigations under the Money Laundering Prevention Act 2008 are in progress against those who were found hiding non-legitimate money in their residences,” reads the MoF’s statement.
The recent cases of the recovery of massive stacks of cash from the private residences of two former prime ministers have shaken Nepal’s political establishment and reignited debate over corruption at the highest level of power. During the recent Gen Z protests, demonstrators reportedly stumbled upon and either looted or burned bundles of currencies worth millions from the homes of Nepali Congress (NC) President and former Prime Minister Sher Bahadur Deuba; Ganga Dahal, daughter of CPN (Maoist Center) Chairman and former Prime Minister Pushpa Kamal Dahal; and former Minister for Energy, Water Resources and Irrigation Deepak Khadka. Deuba’s spouse, Arzu Rana Deuba, had also served as foreign minister in the erstwhile KP Oli-led government, while Ganga currently runs former Prime Minister Dahal’s personal secretariat.
Money and life
Amid growing demand for strict actions against those who were found guilty in these cases, the MoF has come up with a public statement. According to the ministry, there is no need to hoard huge amounts of hard currencies at a time when the government has been facilitating digital transactions in the purchase of goods and services.
The MoF has also urged the general public to carry out digital transactions as far as possible. An individual has to use banking instruments for any transaction worth more than Rs 1 million.
In case of a foreigner visiting Nepal, they can bring in cash equivalent to up to US $ 5,000. “For any amount above the prescribed limit, the individual needs to get a customs declaration before they use the money inside the country.”
For a Nepali engaged in foreign employment, earning in foreign currencies and savings out of the foreign visits, the maximum limit to hold cash is US $ 1,500. “Anyone found holding cash beyond the prescribed limit is subject to face legal action according to the law,” says MoF.
Earlier, Nepal Rastra Bank (NRB) also instructed banks and financial institutions (BFIs) not to reimburse burnt paper currency unless the individuals concerned present a recommendation from the concerned authorities. The central bank says it will not accept any note of which more than 50 percent of its surface has been torn, defaced, or mutilated.
