Kathmandu. Kathmandu: Nepal Rastra Bank (NRB) has made it mandatory to disclose the source of cash transactions of more than Rs 1 million to prevent prevent money laundering. The general public has to submit proof of the source of the money while making payment of Rs 1 million for any banking transaction or depositing it in the account.
Due to this provision, the bank employees look for the source of money when they go to deposit cash in the bank. In case of suspiciousness, the details of the transaction are sent to the Financial Information Unit of the Rastra Bank.
The rules and regulations are so strict, but no such law prevents the gold sellers of New Road in Kathmandu. Although they are trading gold and silver in cash, not lakhs of rupees, not crores of rupees, neither the tax office nor the money laundering department nor the criminal investigation of the police investigates or takes action.
Apart from this, they are also claiming that the amount of payment made in cash will also be deducted from the transaction statement. The concerned tax office has helped in this. Section 21 (2) of the Income Tax Act, 2058 states that payment of more than Rs 50,000 in cash at a time cannot be deducted.
According to the 62nd annual report of the Office of the Auditor General, 27 shopkeepers dealing in precious metals (gold, silver, diamonds and pearls) under the Inland Revenue Office New Road have been involved in the fiscal year 2079 BS. 80 and 2078. He has purchased jewellery and metal worth Rs 18.15 billion in cash. This amount is 78.16 percent of the total amount they purchased in those two years. This data confirms that gold and silver shops in New Road are being used as an easy means of money laundering to convert black money into white.
A total of 27 tax payers dealing in precious metals under the Inland Revenue Office, New Road, have been arrested in the fiscal year 2079 BS. 80 and 2078. He had purchased rs 23.22 billion in 2017. Of this, Rs 1.46 billion was purchased from the banking system and Rs 3.60 billion from other parties.
The Auditor General has written in the report, “The payment was not made through the bank system for the purchase from natural people. Taxes should be determined by investigating the legal source of this purchase and the purchase. ’
The Financial Action Task Force (FATF) has included Nepal in the grey list for not playing an expected role in preventing money laundering. This has damaged the country’s international image.
