Kathmandu. The government has further tightened the business of cooperatives. Now, a rule has been implemented that a co-operative organization cannot do business transactions from personal accounts.
The Department of Cooperatives has issued a circular in the name of co-operatives stating that the Prevention of Money Laundering Act, 2064 has defined cooperatives as financial institutions, as per Rule 10 of the Money Laundering Prevention Rules, 2081 and Section 81A of the Income Tax Act, 2058. It has been directed not to carry out business transactions from personal accounts in accordance with the provisions of the Act. The department has directed the cooperatives to report to the Financial Information Unit if such transactions are found to have taken place.
Rule 10 of the Money Laundering Prevention Rules, 2081 states, “Provisions relating to business transactions and accounts: If a legal person or legal manager is found to have paid or received money related to a business transaction in the personal account of any person other than the account of such legal person or legal arrangement, or if it is found that the personal savings account has been made a medium of commercial transaction except in accordance with the prevailing law, the concerned financial institution shall inform the Financial Information Unit and the Inland Revenue Department. It is mentioned that it should be given.
Similarly, Section 81A of the Income Tax Act, 2058 states that no amount received by any person for business transaction through cash, cheque, QR code or any other electronic means shall be deposited in the personal bank account.
