Summary: The government has empowered the Asset Laundering Prevention Department through an ordinance to investigate additional offenses related to taxes, smuggling, insurance, banking, and the stock market. The ordinance amends Sections 13 and 22 of the Asset Laundering Prevention Act, 2007 (2064 BS), enabling the department not only to conduct investigations but also to file cases. The revision permits the department to initiate prosecutions by filing cases in the relevant government attorney office, with no restrictions on pursuing other related offenses. Kathmandu, 3 May – The government has issued an ordinance expanding the powers of the Asset Laundering Prevention Department in the economic sector, assigning it responsibility for investigating crimes linked to taxes, smuggling, insurance, banking, and securities markets. This ordinance modifies the Asset Laundering Prevention Act, 2007, and was approved on 1 May upon submission to the President’s Office for certification.
The ordinance stipulates in Section 13(1)(k) of the Asset Laundering Prevention Act, 2007, that the department is authorized to investigate information concerning money laundering tied to offenses involving smuggling (including customs, excise, and taxes), taxes (both direct and indirect), and crimes related to currency, banking, finance, foreign exchange, negotiable instruments, and insurance connected with securities or commodity market manipulation or insider trading. Previously, the department was only permitted to receive complaints and conduct investigations related to these offenses; all such complaints fell under investigation authority before the amendment.
Furthermore, the ordinance revises Section 22 of the Act by replacing the phrase “relevant government attorney office” with “in the case of the department, the government attorney office designated by the Government of Nepal through notification in the Nepal Gazette, and for others, the relevant government attorney office” as stipulated in the Gazette. Additionally, subsection (2) now allows that if the department’s investigation indicates a case should be pursued, the government attorney will file the case in the Special Court. The ordinance also amends Section 29 to clarify that there will be no impediment to prosecuting or sentencing under this Act. Subsection (1) of the same section states that despite any other provision in this Act, cases can be filed based on complaints or evidence obtained from investigations related to any offense or money laundering activities under the Act. The ordinance further adds that if during an investigation, cases are identified within the department’s jurisdiction, it may concurrently propose prosecution claims related to those offenses without restrictions.
