This has paved the way for the endorsement of one of the three acts, which Nepal needs to enact within the next few weeks to escape a global warrant, as threatened by Financial Action Task Force (FATF) on money laundering.[break]
"The government is planning to table it for endorsement by within the next couple of days," said an official at the Ministry of Finance.
However, the government is yet to get similar clearance on two other bills, Mutual Legal Assistance Bill and Extradition Bill. The government would also need to get two UN conventions -- Convention on the Suppression of the Financing of Terrorism and Conventions against Organized Crime -- ratified by the parliament to escape global action.
If the government failed to get them endorsed, FATF based in Paris has warned of issuing global warrant against Nepal. In that case, 170 countries across the globe will not honor letters of credit issued by banks in Nepal and also stop money transfers to and from Nepal. This will dampen country´s international trade, insurance and banking services and make things difficult for overseas workers as well.
"We are working on war footing to get other bills and conventions endorsed as well," said the source.
Of the major changes, the Bills Committee-approved AML Act (new amendment) now tags money earned through tax evasion and organized crime as ´tainted´ money.
Once endorsed, Nepal -- going by this definition -- will consider earnings made from arms trade, flouting of foreign exchange law, robbery, dacoit, fake documentation, drugs peddling, human trafficking, banking and other offenses as a crime of money laundering.
It provisions up to five years jail and penalty up to Rs 500,000 for anyone found guilty of such crime.
The new act also authorizes the government to consider a person found involved in financing terrorism abroad as financing terrorism in Nepal itself and punish him accordingly.
The act envisages formation of a coordinating body under the finance secretary to facilitate investigation and taking actions on AML cases. The body will also be responsible for providing necessary legal and technical recommendations to the government to bolster anti-money laundering activities in Nepal.
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