The Government of Nepal has introduced new rules to make land and property deals more transparent and secure. From now on, both the buyer and the seller must show their bank statements when buying or selling land.
This new rule was announced by the Department of Land Management and Archives under a policy called “Directive on the Prevention of Money Laundering and Financing of Terrorist Activities 2082.” The main goal is to stop illegal activities like money laundering and to help Nepal come off the Financial Action Task Force’s (FATF) grey list. Nepal has two years to meet all the requirements set by FATF, and a national plan has already been prepared.
How Do the New Rules Work?
Under the new rule, if you are buying or selling land or property, you must prove that the money was paid directly from the buyer’s bank account to the seller’s bank account.
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For deals between Rs. 10 lakh and Rs. 50 lakh: You must use the banking system or an electronic payment method.
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For deals above Rs. 50 lakh: You must pay through electronic bank transfer or use a ‘Good for Payment’ cheque made out in the seller’s name.
Also, if you have a sales agreement (called bainapatra) verified by your local government and the amount involved is over Rs. 10 lakh, you must show proof that the money was paid electronically to the seller’s bank account. This proof needs to be submitted with the agreement.
Big Transactions Must Be Reported
If someone does real estate transactions worth more than Rs. 3 crore in one day, Nepal Rastra Bank (NRB) must be informed about it.
Why Is This Important?
These steps are part of a bigger plan to make financial transactions in Nepal more honest and clear. By keeping proper records and using banking systems, the government wants to prevent the use of real estate for illegal money transfers or funding of terrorism.
Conclusion
These new rules may feel strict at first, but they are important for creating a safer and more transparent property market in Nepal. If you’re planning to buy or sell land, make sure to follow the guidelines and use official banking channels to complete your payment.
