https://myrepublica.nagariknetwork.com/news/govt-tightens-noose-on-property-transactions-to-control-money-laundering-28-52.html

The government in an attempt to check the use of illegally-earned money in real estate business has enforced stern measures in trading of land and property.

In a new development, the government has made it mandatory to reveal the bank statements of both buyers and sellers of land and houses. Issuing letters to line agencies, the Department of Land Management and Archive (DoLMA) has asked them to enforce the rules to those involved in the transaction of land and property. “While carrying out the transaction of land and houses, the bank statement of buyers transferring the traded amounts to the sellers’ bank account must be included,” reads the directive issued by the department.

The government is considering placing sectors including banking, foreign exchange, education, pharmaceuticals, transportation, insurance, consumer industries, cooperatives, the stock exchange, and real estate under scrutiny for potential money laundering. Consumer right activists have also been raising concerns over money earned from illegal sources and corruption being injected into the real estate market.

According to Prem Lal Maharjan, president of the National Consumer Forum, the artificial hike in the price of real estate is proof of the overall sector being developed as a hub of money laundering.

A report unveiled by the Financial Information Unit (FIU) of Nepal Rastra Bank unveiled last year also underscored notable cases of suspicious transactions in the real estate sector. As per the reports received by the FIU this year, 6,255 suspicious transactions were reported in 2023, which increased to 9,304 in 2024.

Meanwhile, the DoLMA has also asked the Land Revenue Offices to report to the FIU about the details of the land transaction worth over Rs 30 million. Likewise, the offices have been asked to bar cash transactions beyond the limit of Rs 1 million in real estate businesses. The buyers and sellers will also have to update their ‘know your customers’ while carrying out real estate transactions. 

The government has been keeping in top priority to align its policies and programs to delist Nepal from the grey list of the Financial Action Task Force (FATF) within mid-February 2026. The government’s policies and programs also talks about incorporating preparation of the work procedure and its implementation framework to remove the country from the grey list.

The second FATF Plenary held in February 2025 decided to keep Nepal along with 24 other countries under its grey list. The FATF has pointed out the country’s major weaknesses in being apathetic to risks of illegally earned money as the reason for adding Nepal to the grey list.