Bank Statements Now Mandatory for Real Estate Transactions; Payments Above Rs. 50 Lakh to Be Made Through Good for Payment Cheques or Electronic Transfer
In a move aimed at strengthening financial transparency and preventing money laundering, the Department of Land Management and Archives has made it mandatory for both buyers and sellers to submit their bank statements during real estate transactions.
The directive, issued on Tuesday under the title "Directive on the Prevention of Money Laundering and Financing of Terrorist Activities 2082", falls in line with Nepal’s broader effort to exit the Financial Action Task Force's (FATF) grey list. Nepal has been granted a two-year period to address identified shortcomings, and a national action plan has already been prepared accordingly.
As per the new provision, during the sale and purchase of land or property, the reporting institutions must attach documented proof showing that the transaction amount has been deposited directly from the buyer’s bank account to the seller’s bank account.
For transactions ranging between Rs. 10 lakh and Rs. 50 lakh, payments must be made through the banking system or electronic payment channels. However, for transactions exceeding Rs. 50 lakh, payments must be carried out through electronic transfer or by using a ‘Good for Payment’ cheque issued in the name of the seller.
Additionally, if a sales agreement (bainapatra) certified by the local government is submitted and the amount involved exceeds Rs. 10 lakh, the buyer must also provide evidence that the payment was made via electronic transfer directly to the seller’s bank account. This supporting documentation must be submitted alongside the agreement papers.
Notably, the directive also includes a provision requiring that if an individual conducts transactions amounting to over Rs. 3 crore in a single day, the Nepal Rastra Bank (NRB) must be notified of such activity.
These regulations are part of Nepal’s broader compliance measures to improve financial accountability and ensure that real estate dealings are not misused for money laundering or terror financing.
