Cabinet endorses two ordinances on anti-money laundering
The government has endorsed two ordinances concerning Anti-Money Laundering —Second Amendment of the Anti-Money Laundering Act 2008 and the Proceed of Crime Bill.
A Cabinet meeting held on Thursday also decided to forward the ordinances for approval from the President. After the Cabinet ’s nod, the ordinances have to be endorsed by the President before they become law.
The two Acts have to be introduced to avoid any possible blacklisting by the Financial Action Task Force (FATF), the global anti-money laundering body.
The FATF has given June 2013 deadline to introduce the Acts, warning severe consequences in the event of Nepal’s failure to do so.
The proposed amendment has made a provision which requires an individual carrying foreign currencies and precious metals exceeding a certain amount to declare that to the concerned authorities.
Likewise, other provisions in the amendment bill states that the Foreign Ministry should inform about terrorists and terrorist organisations declared by the United Nations Security Council to the concerned country to prevent their investment and flow of money inside the country.
The draft amendment also defines predicate offenses of money laundering as crimes. Predicate offenses are activities that would lead to money laundering, such as corruption, tax dodging, organised crimes and human trafficking. Given the existing Acts not covering the full list of crimes defined as predicate offense by the FATF, the proposed amendment to the Act has incorporated them.
On the other hand, the proposed ‘Proceed of Crime Bill’ has provisioned a separate entity for looking after the property confiscated from individuals allegedly involved in money laundering and terrorist financing activities. As the country has no separate law to deal with property earned through money laundering activities, the FATF asked Nepal to formulate the Act.
The office will have the authority to seize, freeze and confiscate illegally-earned property. The proposed entity will be responsible for not only managing seized property suspected of being acquired through money laundering activities, but also the property that is earned as a result of predicate offenses of money laundering such as corruption, organised crime, human trafficking and trafficking of endangered species.
A Cabinet meeting held on Thursday also decided to forward the ordinances for approval from the President. After the Cabinet ’s nod, the ordinances have to be endorsed by the President before they become law.The two Acts have to be introduced to avoid any possible blacklisting by the Financial Action Task Force (FATF), the global anti-money laundering body.
The FATF has given June 2013 deadline to introduce the Acts, warning severe consequences in the event of Nepal’s failure to do so.
The proposed amendment has made a provision which requires an individual carrying foreign currencies and precious metals exceeding a certain amount to declare that to the concerned authorities.
Likewise, other provisions in the amendment bill states that the Foreign Ministry should inform about terrorists and terrorist organisations declared by the United Nations Security Council to the concerned country to prevent their investment and flow of money inside the country.
The draft amendment also defines predicate offenses of money laundering as crimes. Predicate offenses are activities that would lead to money laundering, such as corruption, tax dodging, organised crimes and human trafficking. Given the existing Acts not covering the full list of crimes defined as predicate offense by the FATF, the proposed amendment to the Act has incorporated them.
On the other hand, the proposed ‘Proceed of Crime Bill’ has provisioned a separate entity for looking after the property confiscated from individuals allegedly involved in money laundering and terrorist financing activities. As the country has no separate law to deal with property earned through money laundering activities, the FATF asked Nepal to formulate the Act.
The office will have the authority to seize, freeze and confiscate illegally-earned property. The proposed entity will be responsible for not only managing seized property suspected of being acquired through money laundering activities, but also the property that is earned as a result of predicate offenses of money laundering such as corruption, organised crime, human trafficking and trafficking of endangered species.
0 comments
तपाईंको प्रतिकृया