KATHMANDU, June 8: The government has revoked its recent directive requiring mandatory submission of bank statements during land and property transactions, following intervention from the Prime Minister’s Office. The provision, introduced just a week ago by the Department of Land Management and Archive, aimed to curb money laundering but was met with immediate pushback.
Initially enforced on May 22, the rule mandated buyers and sellers to submit bank statements and KYC documents. However, under the revised directive circulated Sunday, parties involved in property transactions may now present alternatives such as good-for-payment cheques, bank guarantees, e-payment records, or certified deposit vouchers instead of full bank statements.
Transactions under Rs 5 million must still be documented through formal banking channels, while deals exceeding Rs 10 million now fall under close scrutiny, with details required to be forwarded to Nepal Rastra Bank.
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Officials cited privacy concerns and administrative burdens as reasons for the revision. The PMO reportedly summoned officials from the land ministry and department for consultation, emphasizing that mandatory bank statements could violate individual privacy and complicate transaction procedures.
Other revisions include flexibility in revenue payment methods and the removal of a clause requiring buyer-seller bank transaction records for deals over Rs 1 million based on advance contracts certified by local governments. Additionally, the clause mandating NRB reporting for property deals worth over Rs 30 million in a single day has been adjusted to include transactions above Rs 10 million.
This reversal comes as part of Nepal’s broader efforts to comply with Financial Action Task Force (FATF) standards and avoid being listed on the FATF grey list.