Rastra Bank cautions social media advertisers regarding informal payments for their advertisements; Actions to be taken if found guilty

Nepal Rastra Bank (NRB) has published a circular concerning foreign transfers resulting from online advertisements.

In recent days, many brands in Nepal opt to advertise their product, service, and brand via online platforms such as Facebook, Twitter, and Youtube. Most of these brands use advertising agencies to place such ads and then make the payments to them. The advertisers, in turn, pay to the platform where the ads are being placed. However, according to the circular if these payments are happening informally then that is against the foreign exchange act, 2019 and is punishable.

Regarding the same, NRB has stated that the payment made abroad for such advertisements or received from abroad are still being carried through informal channels. Therefore, if any such transactions are seen to have happened, Rastra Bank will take action made on the existing laws of Foreign Exchange Act, 2019.

The full circular can be viewed below: