Money Laundering Laws in Nepal
A Study on
Money Laundering Laws in Nepal
( A Seminar Paper )
Submitted
to
The
Central Department of Law,
Nepal
Law Campus, Tribhuvan University
(For
Partial Fulfillment of the Requirement for LL.M. Degree)
Submitted
by
Bhakti
Ram ghimire
LL.M.
First Year (3 years LL.M.)
Roll
No. 2\2069
March,
2013
PREFACE
This
Seminar "A Study on Money Laundering Laws in Nepal " is prepared in the partial
fulfillment of the requirement for LL.M. Degree and will be submitted to the
Central Department of Law, Nepal Law Campus, Tribhuvan University.
This
study examines the problems faced in enforcing the criminal anti-money
laundering measures. For this purpose, the laundering offence and confiscation
measures, both domestically and internationally, are discussed and suggestion
are made for methods of enforcing those measures in order to make effective the
control of money laundering in emerging economies in general and Nepal in particular.
Money laundering
as a crime only attracted interest in the 1980s, essentially within a drug
trafficking context. It was from an increasing awareness of the huge profits
generated from this criminal activity and a concern at the massive drug abuse
problem in Nepalese society which created the impetus for governments to act
against the drug dealers, corruption, human and arm trafficking by creating
legislation that would deprive them of their illicit gains.
Money laundering is a truly global
phenomenon, helped by the International financial community which is a 24hrs a
day business. When one financial centre closes business for the day, another
one is opening or open for business. In addition, a characteristic that should
not be overlooked is the constant pursuit of profits and the expansion into new
areas of criminal activity.
As a 1993 UN Report noted: The basic
characteristics of the laundering of the proceeds of crime, which to a large
extent also mark the operations of organized and transnational crime, are its
global nature, the flexibility and adaptability of its operations, the use of
the latest technological means and professional assistance, the ingenuity of
its operators and the vast resources at their disposal.
Nepal
is highly vulnerable and riskier zone for money laundering because of the open
boarder system, towering practice of underground banking, insufficient rules
and regulation, fragile implementation scenario, inability to use advance and
modern technologies etc. It directly affects transparency, financial stability,
financial governance, foster misuse of foreign exchange, distracts foreign
investment, promotes capital flight support trade loss and boost- up the morale
of predicate criminals.
Accepting
the seriousness of this crime, Nepal has introduced the Money (Asset)
Laundering Prevention Act 2008. It has fully been committed to walk with
international community with holding her hands to them to combat this crime.
For this purpose, Asset Laundering Prevention Rules 2009 have been passed,
financial information unit has been established, Separate Money Laundering
Investigation Department has been established, and Special Court has been
designated as adjudication authority. Although enacting the relating Money
Laundering laws, there is no implication effectively in Nepal.
In
this seminar paper, generally what is Money Laundering, How Money is laundered
and what are the laws to control the money laundering in Nepal are mentioned.
Finally, I suggested the implementation of laws relating money laundering
effectively in Nepal.
Bhakti
Ram Ghimire
Acknowledgement
I have
been provided with lots of supports and suggestions from many people in the
process of preparing this seminar paper. First and foremost, I would like to
express my gratitude to my Convener of Seminar and Associate Professor Dr. Bal
Bahadur Mukhia for his valuable outstanding guidance and encouragement to
prepare this seminar paper successfully.
In
the course of preparation of this research, many people have provided their
valuable suggestions and supports. Special Court, Attorney General Office, Nepal
Rastra Bank, Revenue and Money Laundering Investigation Department, and Lawyers
are thankful for their memorable assistance. I would like to express my
profound gratitude to all of them.
I am very much thankful to the
staffs of Nepal Law campus, Nepal Law Campus Library and National Judiciary
Academy. They provide me such a valuable materials and co-operation.
It will be unfaithful if I forget those persons who are
involved in my effort both directly and indirectly. In return, I want to
remember and offer special thanks to all the colleagues of this batch, and
other individuals and personally Mr. Ganesh Prasad Pandey for assisting me.
Thanks! March, 2013
Bhakti Ram
Ghimire
LLM 1st
Year
Table of Conte
Chapter one
1.
Introduction
1.1
Background
1.2
Statement of Problem
1.3
Objective of the Study
1.4
Significance of the Study
1.5
Limitation of the Study
1.6
Organization of the Study
Chapter two
2.
Literature Review
2.1
Review of Literatures
Chapter three
3.
Methodology
3.1
Research Design
3.2
Sources and Nature of Data
3.3.
Universe and Sampling
3.4
Indicators/Measurement
3.5
Techniques of Data Collection
3.6
Data Analysis and Presentation
Chapter four
Conceptual
Analysis of Money Laundering
4.1
Meaning and definition of Money Laundering
4.2
Nature of Money Laundering
4.3
Stages of Money Laundering
4.4
Impact of Money Laundering
4.5
History of Money Laundering
4.5.1 International Arena.
4.5.2 Nepalese Prospective
Chapter five
Anti-
Money Laundering Mechanism
5.1
International Conventions
5.2
Anti Money Laundering Legislation in Nepal
5.3
Executing Agency
5.3.1 International
5.3.2 National
5.4
Implementation Situation of Money Laundering Laws in Nepal
5.5
Review of selected cases
Chapter six
Empirical
Analysis
6.1
Result Presentation of Empirical Test (table, figure, bar graph)
6.2
Critical analysis
Chapter Seven
Conclusion
and Recommendation
7.1
Findings
7.2
Conclusion
7.3
Recommendation Bibliography
TABLE OF ABBREVIATIONS
AML - Anti
Money Laundering
APG - Asia Pacific Group
CFT - Combating the Financing of Terrorism
CIAA - Commission
for Investigation of Abuse and Authority
CTC - Counter
Terrorism Committee
EC - European Community
ESW - Egmont Secure Web
FATF - Financial Action Task Force
FIC - Financial Information Unit
GRP - Governance Reform Program
IMF - International Monetary Fund
INTERPOL - International
Criminal Police Organization
LC - Letter of Credit
MLPA - Money (Asset) Laundering Prevention
Act
NCC - National coordination Committee
NRB - Nepal Rastra Bank
OECD - Organization for Economic Cooperation
and Development
RID - Revenue Investigation Department
RMLID - Revenue
and Money Laundering Investigation Department
UN - United Nation
TABLE
OF CASES
Nepal Government vs. Min Bahadur
Ghele, (Special Court)………………………..
Nepal
Government vs. Wu Lixiang, (Special Court)………………………………..
.
TABLE OF STATUTES
Corruption Prevention Act 2002
Excise Duties Act 2002
Foreign Exchange Regulation Act 1962
Human Trafficking Control Act 1980,
Income Tax Act 2002,
Money (Asset) Laundering
Prevention Act 2008
Section 1(2)…………………………………………..
Section 2……………………………………………..
Section 2(n)…………………………………………
Section 3………………………………………….
Section 4………………………………………….
Section 4(A)……………………………………….
Section 4(B)……………………………………..
Section 5…………………………………………
Section 5(A)……………………………………..
Section 6(1)………………………………………
Section 6(2)………………………………………
Section 7………………………………………….
Section 7(A)…………………………………….
Section 8………………………………………….
Section 8(A)…………………………………..
Section 9(1)…………………………………
Section 10(1)…………………………………..
Section 10(2)…………………………………
Section 10(2)(a)……………………………..
Section 10(3)………………………………..
Section 11…………………………………………
Section12(1)……………………………..
Section 12(2)…………………………..
Section 13……………………………………
Section 14………………………………….
Section 15…………………………………
Section 16…………………………………
Section 17……………………………..
Section 18…
Section 19…………………………………
Section 23………………………………..
Section 24…………………………………..
Section 25…………………………………..
Section 28…………………………………..
Section 29…………………………………..
Section 30…………………………………..
Section 31(1)…………………………………..
Section 31(2)…………………………………..
Section 32…………………………………..
Section 33…………………………………..
Section 34…………………………………..
Section 34(3)…………………………………..
Section 35…………………………………..
Section 36…………………………………..
Section 39 …………………………………..
Section 40…………………………………..
Section 42…………………………………..
Section 44…………………………………..
Section 44(A)…………………………………..
Section 44(C) ……………………………….
Section 45…………………………………
Muluki Ain 1910 BS (1854 AD)
Money (Asset) Laundering
Rules
Rules 3……………………………
Rules 4…………………………….
Rules 5……………………………….
Rules 13………………………………
Rules 14……………………………….
Rules 17……………………………..
Rules 28……………………………..
Narcotic Drug Control Act 1996,
Nepal Rastra Bank Act 2002
Revenue Pilfers Control Act 1996
Value Added Tax Act
1993
TABLE OF CONVENTIONS
United
Nation Convention against Illicit Trafficking in Narcotic Drugs and
Psychotropic Substances (Vienna Convention) 1988
Article
3……………………………………………..………………
The United Nations Convention
against Transnational Organized Crime Palermo Convention2000
Convention for the Suppression of
the Financing of Terrorism 1999
United Nation Convention against
Corruption 2003
Chapter I
INTRODUCTION
Background
Money
laundering is frequently termed as “Turning of dirty money into clean money”[1].
Money laundering is the practice of engaging in financial transactions in order
to conceal the identity, source and destination of money. It involves a
complex, multiple transactions so that the source of income and destination of
illegal proceeds (money) could be either concealed or diverted or deviously
obtained.
The
term 'money laundering' refers to the transformation of illegally obtained
currency to that which appears legitimate. In addition, it is the concealment
of the illegal source of the income or its applications. The process whereby
proceeds, reasonably believed to have been derived from criminal activity, are
transported transferred, transformed, converted, or intermingled with
legitimate funds, for the purpose of concealing or disguising the true nature,
source, disposition, movement or ownership of those proceeds. The goal of the
money laundering process is to make funds derived from, or associated with
illicit activity appear legitimate.
It
is financial crime, with the aim of making illegal money into legal in nature.
It involves a method of hiding, and converting the money generated from
criminal activities. It is an act which follows the commission of a predicate
crime so as to use the proceeds of crime as if derived from a legitimate
source. Thus the process of money laundering involves disguising of illegal
assets, converting them into legal gains, and removing them from access by the
criminal justice system while retaining their economic value.[2]
In
addition to this, money laundering is a kind of transformation of money from an
illegal one to a legal one. Generally, the sources of money laundered are
reported to be acquired from drug trafficking, narcotic trafficking, terrorism,
trafficking in small arms, bribery and corruption, smuggling of gold/diamonds,
economic scams, organized crimes, tax evasion, women and children trafficking,
credit- card frauds, counterfeiting of goods, currency and so on.
Money
laundering is the process of washing, cleaning, converting, criminally earned
money into legal form. It is a process by which illegally obtained, earned,
received money is transferred into white money. It decorates the illegal
proceed with the veil of legitimate source. It is the process by which large
amounts of illegally obtained money is given the appearance of having
originated from a legitimize source.
As
the global context seems to be changing, with the rapid growth of development
there have structural change in the world economy. Globalization brought
nations in one forum through liberalization of market and economy. This
development created both opportunity and risk for society. Legal power started
its control over society and unseen force emerged as threat to the global
economy. Most of them were organized as criminal gangs and were affecting
global society by operating their illegal business across the national
boundaries
Money
laundering has a major impact on a country’s economy because it affects
economic growth. It fosters the morale of criminals to commit heinous crime
because it provides the way to disguise the marks and signs of crime.
Similarly, money laundering helps criminals by providing means of concealing
the source of illegal money and act also
Thus
we can say that money laundering is the proceed of crime ,which to a large
extent also mark the operation of the organized and transnational crime, are
its global nature, the flexibility and adaptability of its operations, the use
of the latest technological means and professional assistance, the ingenuity of
its operation and the vast resources at their disposal. It seems to be a
victimless crime. It has none of the drama associated with the robbery or any
of the fear that violent crime imprints upon people’s physic. The important
thing is that money laundering can only take place after a predicate crime has
taken place.
In
this context United Nation (UN) Convention against Illicit Trafficking in
Narcotic Drugs and Psychotropic Substances (Vienna Convention, 1988) has given
internationally accepted definition of money laundering. Article 3 of the
convention states money laundering means the following conduct when committed
intentionally[3].
The
conversion or transfer of property knowing that such property is derived from
criminal activity or from an act of participation in such activity, for the
purpose of disguising or concealing the illicit origin of the property or for
assisting any person who is involved in the commission of such activity to
evade the legal consequences of this action;
The
concealment or disguise of the true nature, source, location, disposition,
movements, right with respect to, or ownership of property knowing that such
property is derived from criminal activity or from an act of participation in
such activity;
The
acquisition, possession, or the use of property, knowing, at the time of
receipt, that such property was derived from criminal activity or from of
participation in such activity.
Money
laundering is newly introduced subject in the sphere of Nepalese legal system.
It is different from the traditional crime. Nepalese legal system had mainly
concerned its attention to crime against bodily harm and harm to individual’s
property. Money (asset) Laundering Prevention Act 2008(MLPA) has only defined
the laundered activities. According to this Act; Asset shall be supposed to
have laundered in cash, anyone directly or indirectly, earns from tax evasion
or terrorist activities or invests in such activities or acquires, holds
,possesses or utilizes assets by committing any or all offences stipulated as
follows and in cash assets acquired, held or accumulated from investment of
such assets is possessed, held or used, utilized or consumed or committed any
other act so as to present such asset as legally acquired or earned assets or
conceals sources of origin of such asset or assist any one to transform,
conceal or transform such asset with an objective of avoiding legal action to
the person having such assets[4].
As
a part of global village, Nepal has recently introduced Money (Asset)
Laundering Prevention Act 2008. Before the formulation of MLPA, these crimes
are controlled under Corruption Prevention Act, 2059. But provisions mentioned
in Corruption Prevention Act are not sufficient to control these types of
crimes so Money (Asset) Laundering Prevention Act 2008 has promulgated. Nepal’s
geo-political situation and overall governance pattern has tremendously
facilitated on money laundering possibilities. Indo-Nepal open borders, free
transactions, of different trades and unlimited exchange facilities of Indian
currency have left sufficient possibilities for illegitimate earnings from one
country to another. In the process of laundering illicit amount of money
different methods are applied in the different parts which are common in the
Nepalese prospective. In this periphery, researcher has conducted this study
specially highlighted to the implementation of the Money laundering Prevention
Act, 2008.
1.2 Statement of Problem
Money
Laundering has become a threat not only for national economy but also for the
global economy. It is obvious that each state has to enact anti money
laundering legislation. Many developing countries do not have an adequate
mechanism for controlling anti money laundering activities including legal
provisions and competent agencies for interpretation of existing laws. Simply
enactment of act and regulations may not be enough to prevent and investigate
the crimes related to money laundering. There must be a competent agency to
interpret prevailing laws. Nepal has enacted Money (Asset) Laundering
Prevention Act in 2008. The Act has made
the provisions as separate government agency for accelerating anti money
laundering activities by interpret ting the Act on behalf of the government of
Nepal. It is a high time to search the
answer for the question whether the provisions incorporated in the Act are
adequate and government mechanism is competent to curb the criminal activities. For fulfilling this requirement this research
deals with the following questions:
·
How far the existing laws in relation to
Anti money laundering are adequate to control money laundering in Nepal?
·
To what extent the implementation
aspects of the Acts are satisfactory?
1.3
Objective of the Study
The objectives of this study are as
follows:
·
To highlight the conceptual framework of
money laundering.
·
To discuss on importance of Anti Money
laundering legislation.
·
To trace out the weaknesses of money
laundering legislation of Nepal.
·
To assess implementation impact of Money
Laundering Prevention Act in Nepal.
·
To make policy recommendation for
effective implementation of Money Laundering Prevention Act in Nepal.
1.4 Significance of the
Study
It is a threat to economic structure
destabilizing the financial institution and system. The seriousness of this
crime is very crucial because it has no limit within boundary of a particular
country. The laundered money has seemed to use to gather political power also.
Therefore,
it seems very crucial to analyze the concept, meaning, history and nature of
money laundering, International trends and efforts, its impact to society and
the situation of Nepalese law in context to this issue.
As
stated above, it is an unexplored area in context to Nepalese criminal
jurisprudence. Although some efforts have been made to carry out its
application or practicability in Nepal, but it is very important to identify
the problematic areas or obstacles. Thus, this research topic has been chosen
to be analyzed.
Furthermore,
it is urgent to identify sources of money laundering, the flows of dirty money,
and its impact to society, nation and international community so that the
provision relating to anti money laundering law could be made effective.
This
academic paper tries to give the clear concept of money laundering and current
provisions of Nepalese laws. So this paper is helpful and useful for those
people who are interested in this field. This study is considered as a
significant undertaking from the following viewpoints.
· This
study is of great value for lawmakers, judges, lawyers, academicians to foster
their knowledge regarding money laundering.
· This
study tries to solve the problems which may help the policy maker as well as
concern government office.
· It
tries to find out the impacts areas on Money laundering, which may help to
develop mechanism for the effective implementation of Anti money laundering
Act.
· It
is of great importance for government authorities to identify the major concerns
on money laundering.
· The
financial and commercial sectors are also benefited more or less to identify
challenges and affects to them and their role to combat such grievous crime.
Finally,
this study is a lens to peep into this issue to gain knowledge and have proper
understanding about money laundering to those who have keen interest in this
subject.
1.5. Methodology of The
Study:
This
research is based on the doctrinal method of research with special references
to the Nepalese legal frameworks. This study followed the descriptive research
design which describes phenomena as they exist. Such studies involve the
systematic collection and presentation of data to give a clear picture of a
particular situation. This method attempts to obtain a complete and accurate
description of a situation[5].This
study also followed the analytical as well as comparative study with reference
to the qualitative research design as per necessity where as analytical method
support to analyze the information already available in making a critical
evaluation of the available materials[6].
Comparative style of study would be applied to make the subject matter clear.
1.6. Limitation of the Study
This
study is limited within the periphery of Nepal. This study is based on analytical
and descriptive method so there is no comparison of legal provision between
different countries and their practices. This study is more focused on concept,
meaning, major international instruments developed against money laundering and
Nepalese Money Laundering Prevention Act only.
1.7. Literature Review:
While
conducting this study, detailed review of literature especially in the field of
anti money laundering is done. In the process of research, the researcher has
tried his best efforts in collecting and reviewing the relevant literatures
from different sources. This research includes articles published in different
journals, reports, previous research papers prepared by other scholars etc.
Especially following articles, books, reports and website are reviewed while
conduct the research.
Mathers C., (2004), Crime School: Money Laundering True Crime
Meets the World of Business and Finance, Researcher has reviewed
in this book deals with what is Money Laundering?, Organized Crime , Getting
Money into Banks, Terrorists, Domestic Banking and Securities, Offshore Banking
,Cops, Cash and Corruption and other subtopic. It clarifies how the criminal
world penetrates our daily lives potentially invisible, but highly damaging
ways by prescribing its own experiences. Money, and its mysterious movements,
is the core of the book, how money laundering works from the streets to the
banks has clearly mentioned in this book. But it does not pay attention drugs,
gambling, prostitution, and other ways in which illegal income is generated.
Mainali, S. P., (2004), 'Money
Laundering Problems, Their Implications and Government Efforts in the Nepalese
Context', Prasasan vol.98,no.1,Ministry of Public Administration. In addition to
this, the researcher has reviewed in this article clarifies different prominent
topics and sub-topics in relation to money laundering on the one hand and on
the other it presents the clear cut global, regional and national scenario of
the issue. Not only this the article also highlights the legal provisions, its
implementation its problems and hypothetical solutions. But he cannot recommend
to proper solution addressing the present Nepalese scenario.
Paudel, K. P., (2058), Mudra Nirmalikaran Aambandi Aparadha: Ek
Charcha, Kanoon,vol.29 Kanoon baybasayi Klab, Kathmandu. In
this article Kedar Prasad Paudel has presented his views in relation to the
title by highlighting topics like Money laundering: Introduction, Money
laundering process, purchase of Expensive Goods, Use of Financial Institutions,
and International Efforts against the crime money laundering and Nepal Drugs:
production, sale and trafficking, Human body trafficking, smuggling,
corruption, other crimes. Money laundering and Nepal’s laws, laws relation to
seize, laws in relation to Banks secrecy, laws relation to Foreign currency
exchange, management in relation to order Banks business details, some sections
in relation to financial crimes, money laundering crime in Nepal. Paudel has
expressed his views in all the titles and lies article mainly advocates that as
Nepal has various policies in relation to Money laundering crime this country
is the fertile land for the criminals. Not only this, he alerts the related
institutions saying that Nepal must establish an institution which will investigate
crimes in relation to Money laundering. But he didn't suggest to effective
solution about anti-money laundering in Nepal.
Ghimire,
C. N., (2059), Mudra Nirmalikaran ra Arthik
Aparadha, Camad, vol.5, no.2,
Centre for Administration, Management and Development, Kathmandu.
In
this article Ghimire explains the ways of earning black money, the reasons and
ways of Money laundering procedures of Money laundering, International efforts,
National efforts and present problems. After explaining all these he asserts
that there is an urgent need of an institution which will strictly handle these
problems. Along with this he says everyone must disclose his/her source of
income. He also reinforces to implement policies like “know our customer policy. But, his suggestions are only solution
on the basis of morality. Only morality not practicable for everyone.
Nepal, H. K., (2009), Money Laundering, Financing of Terrorism and International Efforts,
year 7, vol.13, Business Law Journal, Kathmandu.65-76. Author
focuses on the crimes of Money Laundering and financing of terrorism are
serious in nature, operation and consequences. He further says they are
directly against the issues of security stability and system. He suggests that
the states need to develop an affective international coordination and
mechanism, especially in the financial sector by preventing criminals from
enjoying the proceeds of crimes. He further advocates that the prevention of
such crimes can be done only by international coordination, cooperation and
exchange of information. Mr. Nepal recommendations are more practicable than
above others. But, it is not sufficient for controlling the money laundering in
present Nepalese context.
paudel, M. S.,
(2010), Aarthika Aparadha, year 31,
vol.1 Rajaswa, Revenue Administration
Training Centre, Kathmandu. In this article the
author explain that money laundering is a kind of economic crime. With the help
of this black money is purified into white. He has mentioned the ways of money
laundering but he has not clarified it in a proper way, he further pinpoints
that although we have Act but as we lack independent institution we are unable
to implement it in a perfect way.
Bhatta, D., (2066), Mudra
Nirmalikaran Sambandhi aparadha, chunauti tatha samadhanka upaya, vol 75 Kanoon,Kanoon baybaasayi Klab
Kathmandu. In this article
at first Bhatta gives the glimpses of the definition of money laundering, step
of money laundering, international conventions, international and regional
agencies and its effective provisions. In the context of Nepal the writer has
talked about its features, its challenges, problems and has provided some
solutions. The articles have not provided any critical analysis in
implementation sector. Other then this it has enclosed almost of the money
laundering.
Besides
above mentioned material I have reviewed several books, journals, articles and
various internet sources also. For that purpose I have visited several places
including Nepal law campus library, central law library, library of Supreme
Court, library of attorney general office, Nepal Bar Association library etc.
I
reviewed above mentioned literature and others, writers have recommended to
anti money laundering as practicable as per their approach. But, I couldn't
satisfy about this solution to anti money laundering. So I choose this study on
Money Laundering in Nepal so that I can
suggest additional solution for controlling money laundering in Nepal.
1.6
Organization of the Study
To
make the study more systematic, scientific and fruitful response the whole
report is divided into followings order:
Chapter
I - Introduction part,
chapter
II - Conceptual frame work of money laundering
Chapter
III - chapter five, six and seven is discussion about comparative and critical
study of money laundering legislation in Nepal respectively. The conclusion and
recommendation part of the study is mentioned in the chapter eight
Chapter
II
Conceptual
Analysis of Money Laundering
2.1. Meaning and definition of
Money Laundering
Laundering
in general signifies washing or cleaning to abolish mark or stain. Laundering
allows criminals to transform illegal obtained gain into seemingly legitimate
funds. It is a worldwide problem, those who commit the underlying criminal
activity may attempt to launder the money themselves, but increasingly a new
class of criminals provides laundering services to organized crime.[7]
The process of money laundering leads to the transformation, conversion and
change of proceed from one to the other.
In
the similar manner Money laundering is the process of washing; concealing,
cleaning, converting, criminally earned proceed into legal form by making its
source appear to be from legitimate and legal transactions. In other
words it is a process by which illegally obtained, earned, received money is
transformed into white money. It decorates the illegal proceed with the veil of
legitimate source. Generally the sources of money laundered are believed to be
trafficking, drugs dealing, bribery and corruption, smuggling of gold, economic
scam, organized crime, tax evasion, trafficking of women and children, credit
card frauds, counterfeiting of goods and currencies and so on. Money laundering
is a process of cleaning illegal earned proceeds into legal one. It is an
attempt where the source of income and destination of illegal proceed is either
concealed or diverted or deviously obtained. [8]
Money
laundering is generally defined as the process by which the proceeds of crime
and the true ownership of these proceeds are changed so that the proceeds
appear to come from a legitimate source. It is the practice of engaging in
financial transaction in order to conceal the identity, sources, and
destination of money. To do so it involves a complex and multiple layers of
transactions so that the source of income and destination of illegal proceeds
could be either concealed or diverted. The players mix up the proceeds so
artfully that it is finally presented as earned from white sources.
"Money laundering is called what it is because that perfectly
describes what takes place - illegal, or dirty, money is put through a cycle of
transactions, or washed, so that it comes out the other end as legal, or clean,
money. In other words, the source of illegally obtained funds is obscured
through a succession of transfers and deals in order that those same funds can
eventually be made to appear as legitimate income".[9]
The term as defined by the common
law
definition is wider: "taking any action with property of any form which is
either wholly or in part the proceeds of a crime that will disguise the fact
that that property is the proceeds of a crime or obscure the beneficial
ownership of said property."[10]In
the past, the term money laundering was applied only to financial transactions
related to organized crime
but at present there are various sources of illegal proceeds some of them are
as projected in the picture.
The International Criminal Police
Organization (INTERPOL) General Assembly adopted working definition in 1995 as
"Any act or attempted act to conceal or disguise the identity of illegal
obtained proceeds so that they appear to have originated from legitimate
sources." It is assumed as easy money earned in large amounts in a short
period of time in an illicit manner i.e. selling of stolen goods and amount
collected from the trafficking of drugs. This is the process of disguising the
illegal origin of funds in order to make them appear legitimate, where by
proceeds of crime derived from different sorts of criminal activities are
transported, transformed, converted either with or separately from legitimate
funds, for the purpose of concealing its true nature, source disposition or
ownership. [11]
Money
laundering is the process of creating the appearance that large amount of money
obtained from serious crimes, such as drug trafficking or activity, having
originated from a legitimate source. Money obtained by illegal action is not,
of itself, laundered money. The laundering offence comes from the attempt to
conceal its source, not because the transaction was itself illegal. It is key
operation of the underground economy.[12]
The
term “Money Laundering” has been defined in various different manners.
Inclusion of all the definitions in this work seems to be impossible that's why
only those definitions which are understandable and focus all the aspects of
money laundering have been included. Some of them are as follows:
Jeffrey
Robinson defines "Money
laundering is “the process of putting illegal or dirty money through a cycle of
transactions to convert it into loyal or clean money. In other words, all
traces of illegality are scrubbed away by a succession of transfers and deals,
so that the same funds appear as legitimate income".[13]
According to
Black law Dictionary money laundering is “the act of transferring illegally
obtained money through legitimate people or accounts so that original source
cannot be traced”[14]
UN
defines it as “Money Laundering is a process which disguises illegal profit
without compromising the criminals who wish to benefit from the proceeds. It is
a dynamic three stage process that requires: first, moving the funds from
direct association with the crime; second disguising the trail or foil pursuit;
and the third, making the money available to the criminal once again with the
occupational and geographic origins hidden from view”[15]
Above
mentioned definition emphasizes on the cycle of money laundering, which
clarifies that the whole cycle is directly related to crime and criminals. The
money directly obtained from criminal act is laundered and then sent back for
the criminal purposes. This act is thus
fostering the criminals and the crime.
Money Laundering
Prevention Act 2008 has only defined
the activities which are laundered. According to this act; Any person commits
the offence of assets laundering if that person owns, possesses, uses,
consumes, utilizes or displays or does any transaction of, the asset obtained,
held or possessed directly or indirectly from commission of any or all of the
following act/s or offence/s, or the asset further generated from investment of
such asset, as a legally earned asset; or transfers or converts so earned asset
with an intention to conceal or disguise the source, nature, location,
ownership, disposal or rights; or purchases, owns, possesses or uses, consumes
or utilizes or does any other transaction of such asset where one has knowledge
of the illegal origin of the asset or where there is reasonable ground for one
to believe the asset has such origin; or assists directly or indirectly to
convert or transfer such asset for the purpose of avoiding legal proceeding
against the person who has obtained such assets[16]
(a)
Revenue evasion,
(b)
Organized crime,
(c)
Financing of terrorist activities,
(d)
Offence under existing law on arms and ammunition,
(e)
Offence under existing law on foreign exchange regulation,
(f)
Offence under existing law against homicide, theft, fraud,
forging of document, counterfeiting, abduction or hostage taking,
(g)
Offence under existing law on narcotic drug control,
(h)
Offence under existing law on national park and wildlife
conservation,
(i)
Offence under existing law against human trafficking and
transportation,
(j)
Offence under existing law on cooperative institution,
(k)
Offence under existing law on forest,
(l)
Offence under existing law against corruption,
(m) Offence under existing
law on bank and financial institution,
(n)
Offence under existing law on banking offences and penalty,
(o)
Offence under existing law on ancient monument conservation,
(p)
Offence under any other law or treaty which Nepal is a party
to, as designated by the Government of Nepal through publishing a notice in
Nepal Gazette
2.2. Nature of Money Laundering
Money
laundering and its relationship with organized crime are interrelated and
interlinked and growing day by day. The huge profit acquired by these criminals
from such areas as drug trafficking, international frauds, adherence fee fraud,
long firm fraud, arm dealing, trafficking in human organ and tissue etc. The
degree of organization that is displayed in money laundering is therefore of
particular concern because of its scale, its capacity to exploit and influence
the legitimate business world and its capacity for internationalization.[17]
“Organized
Crime” refers to those self-perpetuating, structured and disciplined
association of individuals, or groups combined together for the purpose of
obtaining monetary or commercial gain or profit wholly or in part by illegal
means, while protecting their activities through a pattern of graft and
corruption.[18]
The
characteristic of organized crime are evident in money laundering:[19]
·
a group activity, in that it is carried
out often by more than one person;
·
a
criminal activity which is long term and continuing;
·
a criminal activity which is carried out
irrespective of national boundaries;
·
large scale transactions; and
·
Generates proceeds which are often made
available for licit use.
2.3. Stages of Money Laundering
Money
Laundering is not a single act but it is in fact a process that is accomplished
in various stages. Money generated from criminal activities needs to disguise
the origin of funds by doing multiple transactions at multiple phases so that
the true origin could not be traced out by the legitimate authorities and the
money could be seen as legally earned. This process can be taken at the same
time in the course of a single transaction, but they can also appear in well
separable forms one by one.
Three
common factors identified in laundering operations are; the need to conceal the
origin and true ownership of the proceeds; the need to maintain control of the
proceeds; the need to change the form of the proceeds in order to shrink the
huge volumes of cash generated by the initial criminal activity. [20]
Money-laundering is a dynamic three-stage
process that requires:
A) Placement
B) Layering
C) Integration
A.
Placement
Placement is the first phase that consists of introducing
the funds gained from criminal activities into the banking and financial
system. This phase has become more and more risky to the criminals due to the
heightened attention given these movements of cash by law enforcement agencies
and legal requirement for banks to report suspicious transactions.[21]
During
the placement stage, the hard currency generated from the sale of drugs,
illegal firearms, prostitution or human trafficking etc needs to be disposed
of, and is deposited in an institution or business. Expensive property or
assets may also be bought.
a.Bank
Complicity b. Currency Exchanges c. Securities
Brokers d. Blending of Funds
and e. Asset
Purchase
B.
Layering
The
purpose of this stage is to make it more difficult to detect and uncover a
laundering activity. It is meant to make the trailing of illegal proceeds
difficult for the law enforcement agencies. The known methods are:[22]
a.Cash
converted into Monetary Instruments b. Material
assets bought in cash then sold
C. Integration
Once
the funds are layered and distanced from their origins, they are made available
to criminals to use and control as apparently legitimate funds. This final
stage in the money laundering process is called 'integration'. The laundered
funds are made available for activities such as investment in legitimate or
illegitimate businesses, or spent to promote the criminal's lifestyle. At this
stage, the illegal money has achieved the appearance of legitimacy.[23]
Integration means making the money
available to the criminal, once again, with its occupational and geographic
origins hidden from view. for example. By this stage, illegally obtained funds
closely resemble legally generated wealth.
This is the
movement of previously laundered money into the economy mainly through the
banking system and thus such monies appear to be normal business earnings. This
is dissimilar to layering, for in the integration process detection and
identification of laundered funds is provided through informants. The known
methods used are:[24]
a) Property Dealing
b)
Front Companies and False Loans c) Foreign Bank Complicity
d) False Import/Export Invoices
Depending on the money
laundering mechanisms available to the launderer, these three steps may
overlap. The diagram shown below clarifies:
Stages
of Money Laundering
Stages
of Money Laundering
http://www.austrac.gov.au/elearning/mod1/mod_1_money_laundering_11.html
The picture clarifies
that dirty money comes through various sources to criminals. The criminals are
often from high class and are renowned person in society. Collected dirty money
is placed into the financial system to hide the source. Then to cover such
money, layering process is needed, so criminals conducts the business of
transfer in the bank or make a fake loan back scheme. After that it is integrated
in legal forms. At that cycle criminal purchases luxury assets and invests in
commercial, industrial and financial sector.
2.4. Impact of Money Laundering
Money laundering means different things in different
places. This is because only proceeds of crime (or criminal conduct) can be
laundered. Not only this, many countries have restricted the classification of
crimes that are regarded as underlying crimes for money laundering purposes.
So, in some countries any conduct which, if a person was convicted would lead
to a sentence of imprisonment will be regarded as a predicate crime, whilst in
others only offences described in a list are to be regarded as creating
"dirty money."
Impact on Financial System
With the
globalization of economies, the act of money laundering often involves
complicated financial transactions in multiple jurisdictions; thus making it
virtually impossible to trace the origin of such funds. With the growing
activities of trans-national organized crime syndicates, the laundering of
criminally derived gains is fast becoming a lucrative and sophisticated
business across the globe involving lawyers, accountants, bankers, etc.[25]
Impact of rule of law
Rule
of law means due respect and proper application of law.
Money laundering is the product of series of criminal activities performed by
criminals of different fields and different places which damage the social
structure, social values, social system as well as the spirit of rule of law.
It has been a big headache to the individual state and to the world at present.[26]
Impact on Governance
Money
laundering impact goes to increase in corruption and crime. In many
jurisdictions that are havens for successful laundering one often finds lax
concern on the part of government and / or regulators - few predicate crimes,
little or no reporting, enforcement, penalties or provisions to confiscate
illicit funds, etc. Those conditions can then foster bribery of government and
bank officials, lawyers, accountants and others. Once that beachhead is established,
it is not long before bribery turns eyes away from other, even violent, crime.[27]
Chapter III
History of Money Laundering
3.1. History of Money Laundering in
International Arena.
It is
interwoven with the history of trade and banking. No one can be really be sure
when money laundering first began. However, we can be confident that it has
been going on for several thousand years. In “lord of the Rim” sterling
Seagraves explain how, in china, merchants some 2000 years B.C. would hide
their wealth from rulers who would simply take it off them and banish them. In
addition to holding it, they would move and invest it in business in remote
provinces or even outside china.[28]
Over a period of thousands of years, people have used
money laundering techniques to move money resulting from crime - but also often
to hide and move it out of reach of governments - including oppressive regimes
and despotic leaders. Many minorities in countries down the ages and around the
world have taken steps to preserve wealth from rulers, both unelected and
elected, who have targeted them simply because of their beliefs or color. It is
happening even today. The principle of money laundering
have-not changed but the mechanisms have. Over a period of thousands of Years,
people have used money laundering techniques to move money resulting from
crime-but also often to hide and move it out of reach of governments including
oppressive regimes and despotic leaders.[29]
It
was several thousand years ago that money and value were separated and value
became represented by assets, often asset with no intrinsic worth but
increasingly by asset that were recognizable and convertible. So gold coins
were-literally-worth their weight in gold and it was immaterial what country
issued them-the only thing that mattered was the quality and quantity of gold.
Once gold is melted down, it does not lose its value, only its shape. It can be
refashioned having arrived in one place as one things, it can leave there as
something else and that need not even be the same amount of gold. Gold remains
one of the main non currency means of holding money including laundered money.
Diamonds are a particular favorite too. There have been instances of “holy men”
carrying laundered funds by concealed diamonds into California[30].
The
term Money laundering is comes from the term laundering. In the first time,
this word ‘money laundering’ is used by American Journalist. This word is used
in the report of Watergate incident. By
committing any offence, the criminal received cash in his hand. Thus it created
immediate problem over what to do with that money. Opening a cash business was
the obvious things to do. Laundries were a suitable business, and so the term
“money laundering: was invented.
It
is said that the term money laundering was first coined in the United States,
referring to criminal gangsters or mafia who were earning huge sums in cash
from robbery, theft, killing, people extortion, prostitution, gambling and
bootleg liquor. They needed to show the legitimate source of these monies. They
established business such as car washes and laundry shops to mask their illegal
activities. Laundromats were chosen by these gangsters because they were cash
business and this was an undoubted advantage to people payments in laundry shop
as well as vending machines in general are coins. The coins put into the
machine are the only proof how the business is going. Seeing that there
will be no paper trails to point out the additional earnings that come from
illegal activities crime groups additionally ass coins to the daily business
income, making it appear that the coins were put there by paying customers
.Hence, laundries were a suitable business and the term money laundering was
invented. This may or may not be true whatever the origins of the term,
criminal need into business where the cash crop was higher including drugs.[31]
The
phrase money laundering was first coined at the beginning of the20th century.
The criminalization of actual or attempted laundering of proceed of crime is
also quit recent. However, the practice of disguising income derived from
illegal activity can be traced back to the13th century B.C. when the ocean and
seas were originally used as international trade routes. Rife with parties, the
shipments were often purged and plundered for valuable commodities and assets.
Pirates were arguably pioneers in the practice of laundering such articles as
they and even the empires they served sought to profit from their treacheries
in a way that did not attract any ramification.[32]
To
trace the modern history of money laundering, one must keep his mind clear
about the AL Capons and Mayor Lansky case.
Alphonse
“AL” Capone or Scarface, probably the most famous mob gangsters, created a
criminal organization in America in the 1920, during the US prohibition era,
grossing an estimated $100000000 of illegally gained proceeds annually, which
he laundered through a series of business. However, his subsequent incarnation
in the 1930s was not as a result o money laundering or his criminal activity
such as bootlegging, prostitution and gambling, but in fact was as a result of
being found guilty of a $1000000 tax evasion.[33]
While
Chicago police showed no interest substantially investigating the act
Valentine’s Day massacre, the federal administration of President Herbert
Hoover was embarrassed by capons open disregard of the law, especially with his
bootlegging in defiance of prohibition laws. Hoover ordered a closer look at
capon’s activities.[34]
Capone
had no accounting records in his name. However accountant Al Alcini started
liking Capone to his earnings. This brought the Federal Governments attention
to the fact that Capone was not paying substantial income tax .According to
federal income tax law Capone was arrested and convicted him.[35]
Capone
was tried in a federal court in 1932 and found guilty on five of 22 counts of
tax evasion for the years1925, 1926, and 1927 and willful failure to file tax
returns for1928 and 1929.
Alphonse
Capone incarnation, however ultimately backfired on the authorities as it forced
criminal to become more organized in order to profit financially from their
illicit activities. Later gangsters such as Mayor Lansky grasped the importance
of creating business not only as mechanism to launder money, but also to
provide funds for their illegal activities.
Mayor
Lansky was particularly affected by the conviction of Capone for something as
obvious as tax evasion determined that the same fate would not befall him, he
set about searching for ways to hide money. Before the year was out he had
discovered the benefit of numbered Swiss bank account. This is where money
laundering would seem to have started and Lansky was one of the most money
launders ever. The use of Swiss facilities gave Lansky the means to incorporate
one of the real techniques, the use of loan-back concept, which meant that
hitherto illegal money could now be disguised by loans provided by compliant
foreign bank, which could be declared to the revenue if necessary, and a tax
deduction obtained into the bargain.
Whatever
the origin of the term, criminals moved into business where the cash crop was
higher-including drugs. They formed law firms, accountancy practices, brought
banks, film studios, engineering concerns, even governments. In 2002 one person
was trying to bye control of a central bank...but money laundering also was
developed in order to facilitate trade.[36]
3.2.
History of Money Laundering in Nepalese perspective
Basically Money
laundering in Nepal has been in practice for so many years. But it was not
considered as a national problem earlier. Legally speaking, money laundering is
not considered as a crime because especial emphasis has been given in combating
corruption. . The Nepalese law has addressed economic crime from its early
period by criminalizing such crimes. However, Nepal does have a bank secrecy
law, but this provision does not support the investigator or investigating
agencies against money laundering.[37]
Nepal has launched
‘Governance Reform Program’ (GRP) since December, 2001. As one of the important
components of GRP a strong provision for anti-money laundering is clearly
mentioned. A bill for anti-money laundering is drafted by the Ministry of
Finance and finally enacted the Money (asset) Laundering Prevention Act 2008 in
January 1, 2008.
Human Trafficking
Control Act 1980, Narcotic Drug Control Act 1996, Prevention of Corruption Act
2002 and Foreign Exchange Regulation Act 1962 were earlier in practice. In
Nepal important tax statutes including the Income Tax Act 2002, the Excise
Duties Act 2002 and Value Added Tax Act 1993 have stringent provisions for tax
evasion. In corruption cases one main change has been recently brought to the
existing system by a new act, which introduced the crime of corruption on the
basis of accumulation of property or high expenses not in consonance with the
known source of income of a public officer.
Money laundering in
Nepal is carried out through bank services. Money launderers receive a letter
of credit (L/C) by the bank to import goods. The importer is required to submit
a copy of the bill of entry within a specific period from the date of issuance
of the L/C. But a forged bill of entry is presented to the bank to transfer the
foreign currency against a non-existent import. The L/C scandal is one of the
examples of money laundering. In cases detected by the L/C commission 92 firms
transferred US 35 million to third Countries. The investigation revealed that
in many cases no import had taken place, the parties of the L/C also could not
be traced. The money deposited in the bank at the time of the issuance of the
L/C was in cash .The bank secrecy law is not applicable to the investigation of
corruption and money laundering cases.
The
preamble of Money (Asset) Laundering Prevention Act 2008 provides that, it is
expedient to provide for legal provisions to prevent laundering of criminally
earned money (assets); the Legislature-Parliament has enacted this Act.
However, it is not sufficient to criminalize money laundering as a crime. In
modern society, before criminalizing any human conduct as a crime, some
condition must be fulfilled. Any conduct becomes wrongful if it is immoral and
it causes harm or seriousness to others or to actor him/herself. Secondly the
conduct must employ criminal law to condemn or prevent such conduct.
The
battle against money laundering is directly related to the war against drug and
drug criminals, terrorist, trafficking of arm and ammunition. Anti money
laundering activities has done to protect the economy- especially the financial
sector- against corruption by crime and in particular organized crime.
It
is clear however, that the problem is enormous. It is also clear that money
laundering extends far beyond hiding narcotic profits. The dimension of the
problem increase rapidly when one considers, for example, trade fraud and tax
evasion subject the money laundering statues, as well as organized crime and
arm smuggling. Bank and insurance fraud- which can also entail significant
laundering of frauds-add many additional billions of dollar to the criminal profit.[38]
Reasons
to fight money laundering are increasing, as the threats posed by this activity
are significant. The Financial Action Task Force (FATF) has identified four
major threats represented by money laundering activity. Firstly, that failure
to prevent laundering makes it easier for criminals to profit from their
illicit activity. Secondly, that such a failure permits criminal organizations
to finance further illicit activities. Thirdly, that the ready use of the
financial system by launders risks undermining individual financial
institutions and the entire system. Finally, the accumulation of power and
wealth by criminals and crime groups which is facilitated by laundering can
eventually pose a threat to national economies and democratic systems.[39]
Chapter
IV
Existing
Laws Relating Anti Money Laundering and Controlling Mechanism including
International laws
There
are various existing international and national mechanisms, rules and
regulations in relation to Money Laundering which are in practice. Some highly
influential practices are mentioned below:
4.1. International Convention
·
The United Nations Convention against the Illicit
Traffic in Narcotic Drugs and Psychotropic substances 1988 (The Vienna Convention)[40]
The
UN Convention against Illicit in Narcotic Drugs and Psychotropic Substances was
adopted in December 1988 in Vienna. The conventions came into effect in
November 1990 and contained strict obligations on those countries that become
parties to it. It was the first International mechanism to address the issue of
proceeds of crime and to require states to establish money laundering as a
criminal offence. It provides first legal definition of money laundering, is
the historical starting point of international strategy to combat drug
trafficking and large financial profits and wealth generated from such illicit
drug trafficking globally, for the first time in the world.[41]
Nepal is a member since 24 July 1991.
This
convention gave powerful boost and set a new standard for anti-money laundering
efforts by governments. It has 34
Articles. The main purpose of this
convention is to promote Co-operations, mutual legal assistance in
investigation, prosecution and judicial proceeding to the criminal offences
among the parties. The scope of the convention was restricted to drug related
money laundering. This convention provided a significant step forward in the
international fight against money laundering and made money laundering as
internationally extraditable offence.
The
convention requires that signatories make money laundering a criminal offence.
States are also required to eliminate legislative bars to effective
investigation and especially international cooperation in investigation. Thus
the convention Stipulates that states who are party to the agreement must
facilitate the identification, tracing, seizure and forfeiture of the proceeds
of drug trafficking and money laundering such facilitation would include mutual
legal assistance on all aspects of investigation, prosecution and judicial
proceedings.[42]
The
signatories countries agreed to join together to combat the laundering of the
proceeds of drug trafficking. The measures included the criminalization of
money laundering and enhanced international cooperation together with the
commitment of signatories to procure that the laws of their jurisdictions
should be amended to bring this about. In addition, an international body was
established to oversee the implementation of the principles of the Vienna
Convention. This organization is known as the Financial Action Task Force
(FATF) and is based in Paris.[43]
While
the Vienna Convention formed the basis of much subsequent legislation it was
now effectively been overtaken by the Palermo convention.
·
The United
Nations Convention against Transnational Organized Crime Palermo Convention2000
The United
Nations Convention against Transnational Organized Crime, adopted by General
Assembly resolution 55/25 of 15 November 2000, is the main international
instrument in the fight against transnational organized crime. This convention
was signed in Palermo, Italy in December 2002. At that time 184 countries
signed the convention, it entered into force on 29 September 2003 when 40
countries had ratified. It is a multipurpose instrument supplemented by (three)
additional protocols. Under the Convention, four offences considered to
comprise the structural characteristics of organized crime and required to be
addressed by the states in their domestic law.[44] It urge States to create a comprehensive
domestic supervisory and regulatory regime for banks and non-bank financial
institutions, including natural and legal persons, as well as any entities
particularly susceptible to being involved in a money-laundering scheme.
The signatories are required to establish
within their national laws the following four distinct criminal offences.
Ø Participation
in an organized criminal group
Ø Money
laundering,
Ø Corruption,
Ø Obstruction
of justice
The Convention is further supplemented by
three Protocols, which target specific areas and manifestations of organized
crime: the Protocol to Prevent, Suppress and Punish Trafficking in Persons,
Especially Women and Children; the Protocol against the Smuggling of Migrants
by Land, Sea and Air; and the Protocol against the Illicit Manufacturing of and
Trafficking in Firearms, their Parts and Components and Ammunition. Countries
must become parties to the Convention itself before they can become parties to
any of the Protocols.
The Convention represents a major step forward
in the fight against transnational organized crime and signifies the
recognition by Member States of the seriousness of the problems posed by it, as
well as the need to foster and enhance close international cooperation in order
to tackle those problems. States that ratify this instrument commit themselves
to taking a series of measures against transnational organized crime, including
the creation of domestic criminal offences participation in an organized
criminal group, money laundering, corruption and obstruction of justice; the
adoption of new and sweeping frameworks for extradition, mutual legal
assistance and law enforcement cooperation; and the promotion of training
and technical assistance for building or upgrading the necessary capacity of
national authorities.[45]
·
Convention
for the Suppression of the Financing of Terrorism 1999
The
International Convention for the
Suppression of the Financing of Terrorism came into force
in April 2002. It requires Member States to take measures to protect their
financial systems from being misused by persons planning or engaged in
terrorist activities.
This
convention requires each country to take appropriate measures in accordance
with its domestic legal principles, for the detection and freezing, seizure or
forfeiture of funds used or allocated for the purpose of committing the
described offences and criminalizes terrorism, terrorist organizations and
terrorist acts.
In September 2001, the UN Security Council
adopted Resolution 1373
through which it imposed certain obligations on Member States, such as the
prevention and the suppression of the financing of terrorist acts, the
criminalization of terrorism-related activities and of the provision of
assistance to carry out those acts, the denial of funding and safe haven to
terrorists and the exchange of information to prevent the commission of
terrorist acts. In the same resolution, the Council also established the
Counter-Terrorism Committee (CTC) to monitor the implementation of the
resolution.
·
United
Nation Convention against Corruption 2003
This
Convention is directly related to fight against corruption. It emphasizes on taking profit out of crimes
of corruption, a fundamental strategy for control and prevention. It also
elaborates on measures to seize, confiscate and recover the proceeds of
corruption. It criminalizes bribery, the
embezzlement of public funds, offences committed in support of the corruption
as well as the concealment and laundering of the proceeds of corruption. This
Convention recommends countries for international cooperation regarding the
prevention, investigation, and the prosecution of offenders and supports in
tracing, freezing, seizzure an asset-recovery principles.[46]
4.2. Anti money laundering
legislation in Nepal
4.2.1. Money (Asset) Laundering
Prevention Act 2064
The
Money (Asset) Laundering Prevention Act, 2064 (2008) is the first code relating
to money laundering in Nepal. After a long history of practice in globe, money
laundering has been finally introduced in Nepal to control the illegal behavior
of converting, concealing, hiding, financing of illegal money. This act was
Authenticated and publicized in 14 Magha, 2064 (28 January 2008).
The
preamble of this act clarifies the objective of this act as, it is expedient to
provide for legal provisions to prevent laundering of criminally earned money
(assets), and the Legislature-Parliament has enacted this Act. It covers both
money laundering and terrorist financing. It is applicable throughout Nepal and
to any individual or corporate body, wherever may be resident, or located
remitting, transferring or sending assets from Nepal to abroad or abroad to
Nepal obtained by the act which is offence under this Act. (Section 1(2))
The
main aim of this act is to prevent or control laundering of criminally earned
asset. This act does not state what actually is laundering, there are various
terms defined in the definition chapter, but money laundering is not mentioned.
This act has recognized some act, if done, deemed to be involved in money
laundering crime.
The
main provisions of this act are as follows:
v Definition of Some Words
Section
2 of The Act is providing some words definition. According to this section the
term Investigation Officer, offence, transactions, non financial institutions,
occupational business, department, bank,
financial institution, financial information unit, Nepal Rastra bank,(NRB) public servant,
doubtful transaction, assets, government office. But there is not any
definition of the term money laundering.
(section 2)
v Restriction on laundering
activities
Section 3 states that nobody shall launder or
cause to launder assets. Any one committing acts shall be deemed to have
committed offence as per this Act. It means all of the money laundering
activities is restricted, if any person doing so it is committed offence. (section 3)
No
one should attempt, support or provoke others to commit offences related to money
laundering. (section 5)
v Criminalization of money laundering
Any person commits the
offence of assets laundering if that person owns, possesses, uses, consumes,
utilizes or displays or does any transaction of, the asset obtained, held or
possessed directly or indirectly from commission of any or all of the following
act/s or offence/s, or the asset further generated from investment of such
asset, as a legally earned asset; or transfers or converts so earned asset with
an intention to conceal or disguise the source, nature, location, ownership,
disposal or rights; or purchases, owns, possesses or uses, consumes or utilizes
or does any other transaction of such asset where one has knowledge of the
illegal origin of the asset or where there is reasonable ground for one to
believe the asset has such origin; or assists directly or indirectly to convert
or transfer such asset for the purpose of avoiding legal proceeding against the
person who has obtained such asset.
(a) Revenue evasion,
(b) Organized crime,
(c) Financing of terrorist
activities,
(d) Offence under existing
law on arms and ammunition,
(e) Offence under existing
law on foreign exchange regulation,
(f) Offence under existing
law against homicide, theft, fraud, forging of document, counterfeiting,
abduction or hostage taking,
(g) Offence under existing
law on narcotic drug control,
(h) Offence under existing
law on national park and wildlife conservation,
(i) Offence under existing
law against human trafficking and transportation,
(j) Offence under existing
law on cooperative institution,
(k) Offence under existing
law on forest,
(l) Offence under existing
law against corruption,
(m) Offence under existing
law on bank and financial institution,
(n) Offence under existing
law on banking offences and penalty,
(o) Offence under existing
law on ancient monument conservation,
(p)
Offence under any other law or treaty which Nepal is a party
to, as designated by the Government of Nepal through publishing a notice in
Nepal Gazette (section 4)
No one shall finance terrorist activities.(section
4A) Any
person commits the offence of financing of terrorist activities if that person
by any means collects or provides to any person any asset with the intention
that they should be used or in knowledge that they are to be used in order to
carry out any act which constitutes an offence within the scope of the
following conventions or any other act intended to cause death or serious
bodily injuries to an individual.(Section 4B)
(1)
Tokyo Convention on Offences and Certain
Other Acts Committed on Board Aircraft, 1963,
(2)
Hague Convention for the Suppression of
Unlawful Seizure of Aircraft, 1970,
(3)
Montreal Convention for the Suppression
of Unlawful Acts Against the Safety of Civil Aviation, 1971,
(4)
Convention on the Prevention and
Punishment of Crime Against Internationally Protected Persons Including
Diplomatic Agents, 1973,
(5)
International convention Against the
Taking of Hostages, 1979,
(6)
SAARC Regional Convention on Suppression
of Terrorism, 1987,
(7)
Any Convention against Terrorist
Activities which Nepal is a party to.
This Act committed abroad may be liable to
penalty as if they were committed in Nepal provided that the act or offence is
punishable offence in the foreign country where such offence were committed and
such country has not imposed penalty for the offence, in accordance with this Act.(section 5A)
v In case assets of a person sued for an offence
under this Act is found to be unnatural in comparison to the income source or
financial condition or one is living a life unnaturally high in standard or
proved to have donated, granted, gifted, provided loans, contribution or
endowment more than his/her capacity, he/she is required to prove the source of
earnings and in case he/she fails to prove so he/she shall be deemed to have
earned such assets by committing offences.(section
28)
It is not necessary to have the acts or
offence occurred for penalizing the offence and it is not be deemed to be
barred to penalize for the offence simply because there was not filed against
such act or offence or the case was dismissed in case it was filed or charge
therein was not proved. (section 29)
Terrorist
financing has criminalized by this act and provided the supposed grounds for
investment in terrorist activities are main provision.
v Identification of customers
Any
bank, financial institution or nonfinancial institutions shall maintain clear
identity of a person while establishing any kind of business relationship with
him/her or transacting the amount more than the limit at one or several
transactions as prescribed by Rastra Bank from time to time by publishing
notice. (section6(1))
For
the purpose of the limitation of transaction Nepal Rastra Bank can determine
different limitations to different transactions considering the transaction
sector, subject and nature of the transactions. NRB may take opinion of related
regulator body and NRB must publish the general notice if any changes are done
in relation to this. (rules 3).
Bank,
financial institution or non-financial institution, while getting
identification of the customer shall require the person establishing business
relationship or having transactions with it to submit the documents as
follows:-
·
In case of a natural person copy of
citizenship or passport including other necessary documents evidencing his/her
permanent residential address and profession or business,
·
In case of the person or firm, copy of
the document certifying incorporation, establishment or registration of the
institution, documents that presenting name, surname, address, profession,
business of board of directors and executive director or proprietor of firm or
partners of partnership firm,
·
In case of business relation or
transactions to be established or made on behalf of someone else, documents
relating to principal's identity, address including power of attorney
clarifying his/her business,
·
Name, surname, address of close
relative, person or institution benefiting from the transaction of the business
relationship,
·
In case of transactions made through
negotiable instruments, name, surname and address of the issuer and payee of or
from such instrument,
·
Other documents as prescribed by the
Financial Information Unit from time to time.
·
Bank, financial institution or non-financial
institution shall keep a separate record of documents and transactions of each
customer, including date and nature of transactions, type of account if any and
symbol number.(section 6(2))
v Liability of Government entity,
Bank, Financial institution and non financial institution:
The
government entity, bank, financial institution and non financial institution
shall fulfill the following liabilities for the purpose of this Act:-
·
To maintain records of amount transacted
beyond the limit prescribed by Rastra Bank at a single or in a series of
transactions by a person,
·
To investigate and inquire any
transactions which seem to be doubtful or transacted with the motive of assets
laundering or so laundered or there are reasonable grounds for getting into
suspicion,
·
To inform the Financial Information Unit
about the transactions within seven days of event and immediately for the
transactions. The records of transaction
referred to in this Section shall be maintained secured at least for a period
of five years from the date of such transaction. (section 7)
Like as the professionals shall
immediately report suspicious transaction to the Financial Information Unit if
they know of any suspicious transaction in course of their professional
performance.(section 7A)
4.2.2.Punishment to the Offender
(1) Anyone who has committed
the offence of financing of terrorist activities shall be liable to
imprisonment not exceeding five years and fine not exceeding rupees five
hundred thousand.
(2) Anyone who has
committed the offence mentioned in Chapter-2, other than one mentioned in
Sub-Section (1), shall be liable to fine equivalent to the claimant value and
one year to four years of imprisonment.
(3)
In case any bank, financial institution or non-financial institution has
committed offence, the official or staff of such bank, financial institution or
non financial institution who is identified as perpetrator of the offence or in
case such perpetrator is not identified, the official in charge of the
institution at the time of commission of the offence shall be liable to
penalty.
(4) If any civil servant or
official, chief or staff of any bank, financial institution or non-financial
institution has committed the offence, such person shall be liable to ten
percent additional punishment to the punishment mentioned in Sub-Section (1)
and (2).
(5) Anyone who attempts,
assists or incites the offence under this Act shall be liable to half of the
punishment awarded to the commission of the offence.(section30)
If any person creates obstacles in the
proceedings of investigation and inquiry, the adjudicating officer may punish
him/her with an imprisonment up to six months or a fine up to five thousand
rupees or both based on the report of investigation Officer. (section 33)
Any
assets obtained from an offence of money laundering and assets accumulated
thereof and assets utilized for committing such offence shall be
confiscated. In case entitlement to
assets has been transferred to someone
else and an amount has been quoted in such act of transfer, the amount shall be
dealt as per the deed with security (Kapali).(section34)
Any instrument or goods,
irrespective of who posses it, used in the offence under this Act shall be
confiscated.Provided
that such instrument or goods shall be returned to its owner if such instrument
or goods was used in the offence without the consent of the owner or if the
owner had no knowledge of its use in the offence.(section34(3)
v Criminalization for concealing or
destroying evidences
Any person who commits the offence of
concealing or destroying evidence related to acts deemed to be an offence be
liable for the imprisonment from one month to three months or fine from fifty
thousand rupees to one hundred thousand rupees fine or both in accordance with
the degree of offence committed and person assisting for committing such act be
punished half of such punishment.(section
32)
v Order to freeze the asset of a
foreigner
If any foreign person does not appear in front
of the investigation officer as per the notice or even after such notice is
delivered to him/her, the investigation officer may issue an order to keep
his/her assets, entitlement, interest or concern within Nepal in status quo or
to prevent it to take outside Nepal if he/she has any such assets, entitlement,
interest or concern in the form as determined by the investigation officer till
he/she presents him/herself before the investigation officer and it shall be
the duty of the all concerned to comply with such order.(section 42)
4.2.3.Mechanism
for controlling the money laundering in Nepal:
There
shall be a technical committee to support FIU for the implementations of the
objective of money laundering prevention Act 2008.
Chief of FIU
Coordinator
Representative, department.
Member
Representative,
NRB
Member
Representative, Nepal police
Member
Representative,
Nepal Security Exchange Board Member
Representative, Beema Samiti
Member
Deputy
Director, FIU
Member Secretary.
Technical
committee shall prepare necessary plan to control crime, implement the plans,
create awareness and do the works determine by coordination committee.(Rules 5)
v Provision of coordination
committee:
There
shall be a Coordination Committee to coordinate inter-related entities and to
provide essential suggestions to the Government of Nepal in regard to the
prevention of assets laundering as follows:-
Secretary,
Ministry of Finance - Coordinator
Secretary,
Ministry of Law, Justice and Parliamentary System -Member
Secretary,
Ministry of Home -Member
Secretary,
Ministry of Foreign Affairs –Member
Secretary,
Prime minister and Council of ministers Office -- member
Deputy Attorney General, office of the Attorney General – member
Deputy Governor, Nepal Rastra Bank
- Member
Inspector
General of Police, Nepal Police – member
The chief of the Financial
Information Unit shall act as a secretary of the Coordination Committee and the Financial Information
Unit shall work as Secretariat of the Coordination Committee.The procedures of
meeting of the Coordinate Committee shall be as determined by the committee
itself. (Section 8) The coordination
committee shall have following function, duty and power in addition to the
function, duty and power mentioned elsewhere in this Act.
(a)
To prepare policy for prevention of offence and submit the
policy to the Government of Nepal,
(b)
To implement or cause to implement the decision of the
Government of Nepal taken for prevention of offence,
(c)
To recommend to the
Government of Nepal, as per necessity, to implement the standards and policy
developed for prevention of offence by international organization of which
Nepal is a member,
(d)
To instruct concerned agencies for prevention of offence and
to monitor whether or not the instructions are complied with,
(e)
To implement or cause to implement the annual report prepared
by the Financial Information Unit.
(f)
To perform other tasks in relation to prevention of offence,
as prescribed by the Government of Nepal.(section
8A)
Like
as the coordination committee can provide suggestion to the government in
relation to the crime control, monitor, taking membership on the international
institutions, to make policy and plan to implement the laws and implementation
of annual report submitted by FIU.(rule4)
v Provision of Financial Information
Unit:
There
shall be a Financial Information Unit in Rastra Bank for collection and
analysis of information relating to Money Laundering offence. (Section 9(1))
The
functions, powers and duties of the Financial Information Unit shall be as
follows.
·
To obtain details of transactions from
government entities, bank, financial institution and non-financial institution
regularly and maintain records of those details by scrutinizing them,
·
To conduct preliminary inquiry, in case
the notice, details and documents available to it requires inquiry and
investigation on assets laundering and send its details to the concerned
Department, government entity, bank, financial institution and non-financial
institution,
·
To communicate the Department the
details received including the extensive details, if it appears doubtful or
arises any doubt or prevails reasonable ground not to believe the transaction
upon conducting the inquiry,. write to the Department with extensive details,
To send notice, details and documents regarding assets laundering to the
Financial Information Units of other country and international organization,
institutions reciprocally and receive such notice from concerned country and
international organization and institution,
·
To inspect transactions and records of
bank, financial institution and non financial institution, to obtain any
information or clarification about such transactions and records and their
copies if necessary,
·
To manage required training programs for
the staffs of government entities, Departments and Financial Information Unit
for prevention of assets laundering,
·
To carry out other functions as
prescribed. (section 10(1))
The
Financial Information Unit may give necessary directives to the concerned bank,
financial institution and non-financial institution about the method, form,
time and other procedures regarding the submission of details, statistics,
notices and information.
In course of performance of legal mandate, the Financial Information Unit
may request any government agency or regulatory institution or any organization
or any investigating agency or official to provide to the FIU any information,
particular or document that is in their possession and such agency or official
may, in course of performance of legal mandate, request the Financial Information
Unit for information, particular or document that is in possession of the FIU. (section 10(2)) )
It shall be the duty of the
agency, organization, official and Financial Information Unit to provide the
information. (section 10(2A)
(1)
The Financial Information Unit may, besides issuing
directives on method, form, time and
other procedures regarding the submission of details, statistics, notices and
information, issue directives to
government agency, bank, financial institution, non-financial institution or
professional about the measures they are to adopt while establishing business
relation with the customer/beneficiary, during transaction, for identification
of suspicious transaction, for risk management, for prevention of terrorist
financing or for conducting transaction with politically exposed persons or for
overall monitoring of implementation of the measures and it shall be the duty
of such government agency, bank, financial institution and non-financial
institution and professional to abide by such directives. (section 10 (3)
The Financial Information Unit may award the following fine for following
wrongs.
(a)
Rupees one hundred thousand to bank, financial or
non-financial institution for not maintaining documents and records as per the
provision of this Act.
(b)
Rupees five hundred thousand every time bank, financial
institution or non-financial institution does not report particulars or
information to the Financial Information Unit as per Section 7 and Section 10
(1) (a).
Up
to rupees one hundred thousand to professionals for not reporting information
to the Financial Information Unit as per Section 7(a). (section 31(1)
If
the Financial Information Unit shall punish and person not satisfied with the
punishment may appeal to the Appellate Court within thirty five days of such
punishment. (section 31(2))
v Provision of Money Laundering
Prevention Department:
The
Government of Nepal shall establish an Money
Laundering Prevention Department to make investigation and inquiry of
offences relating money laundering. (section11)
This department is separate body for the investigation or inquiry of money
laundering offences. It has certain power which can be used in the time of
investigation or inquiry of the offences. These powers are as follows:
·
To issue order to any concern government
entity, bank, financial institution or non-financial institution to submit the
concerned document, evidence or other required detail remained with such
entity, bank, financial institution and non-financial institution to the Department
within a particular time limit,
·
To conduct search operation of any
concerned government entity, bank, financial institution or non-financial
institution or of any other places, to seize, take control of concerned
document, deed, material evidence and other evidence and hand its receipts to
the concerned official,
·
To get present and inquire, call
explanation or clarification from the concern official of the concerned
government entity, bank, financial institution or non-financial institution,
other staff or a concerned person supposed to have obtained information of
related facts as deemed by the Department,
·
To release a person with a written
condition to present at requirement or on dated attendance, or release with
guarantee or bail in case there are reasonable grounds that he/she may
disappear or to keep under custody at the failure of providing guarantee or
bail with the permission of the court after the inquiry, explanation or
clarification
·
To freeze, take under control or order the concerned entity
or official to freeze, take under control any assets located in Nepal which is
in ownership, possession or control of the concerned person or any other
benefit generated from such asset or any other instruments used in the offence
whether possessed by the concerned person or somebody else, if investigation
and inquiry so requires or if a request to this effect is received from any
nation where the offence under this Act is committed or from any other
international organization in accordance with the provision of bilateral or
multilateral treaty or agreement which Nepal is a party to or any similar
provisions; Or make a similar request to foreign nation or international
organization through diplomatic channel to freeze or take under control such
asset, instrument or goods.
·
To adopt or cause to adopt measures or method as designated
to conduct investigation and inquiry of the offence under this Act and to adopt
designated standards for identification and evaluation of the asset. (section 12(1))
In
case any government entity, bank, financial institution or nonfinancial
institution is communicated by the Department to submit any documents or any
other matters, freeze assets or provide information about any matter in the
course of investigation and inquiry of the offences under this Act, the entity,
bank, financial institution, concerned official, staff or agent of the
non-financial institution not submitting such document or other matters, not
freezing assets or not providing information and any official or staff of such
entity, bank, financial institution or non-financial institution absenting even
at the order of the Department to be present, the Department may require
him/her to submit documents or matter or to freeze assets or to provide
required information by arresting him/her and may fine him/her up to one
thousand rupees. (section 12(2))
The department may issue an order, in the
course of an inquiry and investigation of an offence, to prevent transactions
or freeze bank account of a person transacting with a bank, financial
institution or nonfinancial institution if any information is obtained that
he/she has maintained transactions or account with such bank, financial
institution or non-financial institution.
(section 19)
According to category and circumstance of
offence the department may issue an order to the concerned office for not
issuing new passport or to seize already issued passport if so required. (section 35)
v Provisions
for Investigation and Inquiry
Any
person, who has information that somebody, has committed, going to committee or
committing any act supposed to be an offence may submit a complaint,
application, information or notice to the Department in written or oral form.
If the Department found any complaint, application, information or notice in
written form it is necessary to register and oral complaint, application,
information or notice shall be registered after giving it to a written form. (section 13)
Under
this provision the complaints can be registered electronically (Rule13), secretly (14),
The Department shall conduct necessary
investigation and inquiry if it receives information from a complaint by any
person or from any other method or source that any offence under this Act has
been committed, being committed or going to be committed. If there is
reasonable ground that the person involved in the offence may abscond or
destroy evidence or document, hide or alter, may take control of any document
or asset or arrest the person involved in the offence by conducting search
operation at the place where offence was committed, being committed or going to
be committed immediately. The department
shall obtain opinion of government attorney while conducting such investigation
and inquiry (section 14)
The
Department may Appoint or designate any officer of the Department or other
officer in the service of government or of any public corporate body as an
investigation officer, in order to conduct investigation and inquiry of the
offences . While appointing or designating any other staff in the service of
government or public corporate body as an investigation officer it is necessary
to consult the chief of the concerned entity or corporate body. (section 15)
While
appointing the investigation officer the investigation tenure should be determined.
If the officer is unable to complete the investigation on the basis of the
nature of the investigation within the given tenure, the time can be extended
up to 120 days not exceeding 35 days at one time .(Rule 17)
The investigation officer can to take necessary action by arresting the
offender (suspect) immediately, to conduct search or cause to conduct search
operation of any office, residence, building, storage, vehicles or of any place
in the course of investigation and inquiry and To exercise other powers vested
to the department. The investigation officer, while proceeding an case may keep
the offender (suspect) on date, release him/her by obtaining Bail or
Guarantee
or keep under custody with the permission of the court if he/she fails to
provide bail or guarantee.(section 16)
The investigation officer may detain the
person if there are sufficient grounds that he/she may extinct or destroy any
evidence or create obstacles or perverse effects in the proceedings of
investigation and inquiry providing him/her a warrant as per prevailing
laws. In case the investigation and
inquiry could not be completed within twenty four hours the investigation
officer shall detain the offender with the approval of the adjudicating officer
presenting the offender before such officer. If request is made to carry out
investigation and inquiry continuing detention
the adjudicating officer, after reviewing the concerned documents and
process of investigation and inquiry whether satisfactory or not, may grant
permission for detaining him/her up to ninety days at a time or time by time
but not-exceeding thirty days at a time. When the investigation officer
requested to keep under custody the detainee may file a petition to the
adjudicating officer for his/her release with reasons and grounds thereof. (section17
The
Department or investigation officer may give order to the concerned entity to
prevent any transfer, pledge, sale/disposal of the assets collected by offence
for a time period fixed, if it is deemed in the course of investigation and
inquiry or there are reasonable grounds at hand that he/she may transfer,
sale/dispose or conceal or transform such assets by any manner. In case a
written request is made to freeze assets the concerned entity shall
freeze/withhold such assets preventing its transfer or pledge or sale/disposal.
In this situation if any entity does not freeze the assets in contravention to
the order the department may impose fine up to fifty thousand rupees as per the
report of the investigation to the chief of the concerned entity. (section
18)
In
case the asset withheld found that it was not obtained by committing an offence
under money laundering the department if case has not been filed, or the court
hearing the case if the case has been filed, shall order to release such assets
to the entity withholding such assets and the entity shall release such assets
if such order is made.(section36)
v Department action to the staff
involved in investigation and inquiry
If any Investigation officer or staff of the
Department acts with a view to cause troubles or tension to others knowingly in
the course of investigation and inquiry of the offences under this Act or in
doing any other acts, notwithstanding whatever mentioned in prevailing laws,
the secretary of the concerned Ministry if such staff is chief of the
Department or the chief of the Department if one is other staff shall take
Departmental action against him/her.(section
39)
v New type of service of summons
A notice to be delivered in the name of a foreign
person in connection with an offense shall be delivered in the name of an
office or representative of such person in Nepal, if any, and the notice so
delivered shall be deemed to have been duly delivered.
In
case the office or representative does not exist, the notice shall be delivered
at the main place of business of such person or his/her permanent residential
address or at the mailing address if provided by him/her in the course of
business, through telex, telefax or other means of telecommunication or through
post by registration and the notice so delivered shall be deemed to be duly
delivered.
If
there is a separate provision in any treaty where Government of Nepal or Nepal
is a party, there shall be no obstruction in delivering the notice in the name
of a person residing in foreign country in the manner as specified in the same.(section 40)
v Concept of plea bargaining
The investigation officer may provide waiver
in the claim of punishment, in full or part, to a person extending cooperation
in regard to the investigation and inquiry proceedings initiated presenting
such person as his witness. But, lawsuit may be reregistered against such
person if his cooperation could not be established from other evidence or if
he/she makes statement before the adjudicating officer against the cooperation
extended by him/her to the investigation and inquiry officer. (section44)
v Information or particulars not to be disclosed
The Financial Information Unit, government
agency, bank, financial institution, non-financial institution or any official
or staff of such agency and institution or professionals shall not disclose any
information and particular they have received to any third party, except to the
agency, organization or official legally mandated to receive such information
or particular.
Any person, government agency, bank, financial
institution, non-financial institution breaching this provision shall be liable
to fine of up to rupees ten thousand and if the provision is breached by any
official, such official shall be liable to additional fine of rupees five
thousand; and if it is a staff, the staff shall be subject to departmental
sanction as well.(section 44A)
v Report to be submitted
Government agency, bank, financial
institution, non-financial institution shall maintain a separate record of the
tasks they have performed in relation to this Act and shall prepare a report
thereof within two months from the end of fiscal year. A copy of the
report shall be provided to the
Financial Information Unit within seven days from the day the report is
prepared. The FIU submit the collected reports in meeting of coordination
committee.(section 44C
v No limitation to file a case
There
is no limitation to file a case relating to the offence.(section 23)
v Government shall be plaintiff
The Government of Nepal shall be plaintiff in
the case relating to an offence.(section
24)
v No obstacle to sue under prevailing
law
A case may be filed under other prevailing
laws if the offence under this Act is also punishable under any other
prevailing law. (section 25)
v Rewardmentship
Any person may be given an amount equal to ten
percent of the amount claimed or one million rupees whichever is lesser as
reward if he/she has made a complaint against an offence along with cooperation
extended for investigation and inquiry or in collection of other evidence and
proof. In case the persons are more than one, such amount shall be distributed
proportionately. (section45)
v Provision
of complaints pending
The Investigation department can keep the complaints
in pending if any complaint is not related to money laundering, with
insufficient evidence; previously pending case if again filed without any new
or additional evidences.(Rule 28)
4.3. Executing Agency
of anti Money Laundering
4.3.1. Executing Agencies of International
Arena
·
International
Monetary Fund(IMF) and World Bank(WB)
In April 2001, The IMF and World Bank (WB)
responded to request from more than 100 countries to help them build
institutional capacity to fight money laundering and terrorist financing. the
Board of IMF discussed the issue of money laundering and ways in which IMF can
contribute to related international efforts. It was considered that IMF is well
positioned to play an important role in protecting the integrity of the international
financial system. Providing support to international efforts to combat money
laundering was considered to be one way in which this objective could be
achieved. It was decided that IMF should intensify its focus on relevant AML
issues, establish a closer working relationship with the major international
AML organizations and groups, and include AML concerns in some of its
operational activities.[47]
Under an action plan for AML, the World Bank
initiated a number of additional measures including upgrading and expanding
staff capacity to respond to client requests for assistance in meeting
international AML standards, linking AML assistance with country assistance
strategies, and building technical capacity among national financial
supervisors and other government officials involved in AML. Among these are
knowledge sharing, awareness raising, and information exchange initiatives such
as the Global Dialogue Series and AML conferences held in Moscow and Montevideo. [48]
·
Financial Action Task Force (FATF)
The independent international body was established in 1989 at the
Organization for Economic Cooperation and Development (OECD) economic summit
held in Paris. Its purpose is to develop and promote national and international
strategies, policy to combat money laundering
and terrorist financing. The FATF is
therefore a ‘policy making body’ that works to generate the necessary political
will to bring about legislative and regulatory reforms in these area The FATF focused on to ratify and implement
the UN convention 1988, increase multi lateral cooperation, criminalize money
laundering, legislation to be framed in such a way that knowledge of money
laundering can be inferred from objective factual evidence, indentifying
customers and keeping adequate records and regulatory authorities to develop
and share information and guidelines and to ensure that supervised institution
have adequate policies and programs in effect.[49]
·
International
Criminal Police Organization
INTERPOL is an organization facilitating
international police cooperation. It was established as the International
Criminal Police Commission in 1923 and adopted its telegraphic address as its
common name in 1956. Its work focuses primarily on public safety, terrorism,
organized crime,
crimes against humanity,
environmental crime,
genocide, war
crimes, piracy,
illicit drug
production, drug trafficking,
weapons smuggling,
human trafficking,
money laundering,
child pornography,
white-collar crime,
computer crime,
intellectual property crime
and corruption.
·
Egmont Group of Financial Intelligence Units
Recognizing the benefits inherent in the development of a financial
intelligence units (FIU) network, in 1995 a group of FIUs at the Egmont
Arnsberg places in Brussels decided to establish an informal group for the
stimulation of international co-operation. Now known as the Egmont Group, these
FIUs meet regularly to find ways to cooperate especially in the areas of
information exchange, training and the sharing of expertise. The goal of the
Egmont Group is to provide a forum for FIUs around the world to improve
cooperation in the fight against money laundering and financing of terrorism
and to foster the implementation of domestic programs in this field. This
support includes.[50]
·
Basel Committee on Banking Supervision
The Basel Committee on banking
supervision formulates broad supervisory standards, guideline and
recommendation statements of best practices on a wide range of bank supervisory
issues.[51]
In December 1988, the
G-10's Basle Committee on Banking Supervision issued a "statement of
principles" with which the international banks of member states are
expected to comply. These principles cover identifying customers, avoiding
suspicious transactions, and co-operating with law enforcement agencies. In
issuing these principles, the committee noted the risk to public confidence in
banks, and thus to their stability, that can arise if they inadvertently become
associated with money laundering.[52]
·
The Asia Pacific Group (APG) on money laundering
The Asia Pacific Group on money laundering was established in 1997, it has
29 members. The main purpose of APG is to facilitate the adoption,
implementation and enforcement of internationally accepted standards against
money laundering and financial terrorism. APG recognizes the FATF forty
recommendations and nine special recommendations which is constitute the
international standards for anti-money laundering. It provides technical
assistance and training expertise to the member countries in the Asia pacific
region on measures to counter money laundering on the basis of workshops, and
produce a typologies report on a regular basis.
Nepal is member of APG from 2003.
5.3.2 Executing Agencies of Implementation
of Money Laundering Laws in Nepal
Nepal has taken some steps
to advance the implementation of its national AML regime. Money (asset)
Laundering Prevention Act was passed in 2008 and money (asset) laundering
prevention regulation was passed in 2009.According to MLPA a Financial
Intelligence unit (FIU) is established on 8th July 2008,
the Financial Information Unit has been function within the NRB. The NRB has
issued directives to the financial sector and to casinos, lawyers, auditors and
gold and precious metal business persons and related government agencies as to
their responsibilities under the MLPA, particularly, in relation to client
identification, record keeping, and reporting of certain information to the
FIU.
In21, April 2008, provisionally the
RID has been assigned the money laundering investigation function and has
started investigating money laundering cases. The government has modified the
organizational structure of RID and the name as Revenue and Money Laundering
Investigation Department (RMLID). Now days the Government has been decided to
establish separate department under Finance ministry for investigation of money
laundering cases and working anti-money laundering regime. For this purpose
anyone can register a complain, after that the department conducts an
investigation and if the crime is justified or prove then the department ask
for the recommendation by a government attorney and file the case in Special
court.
The Special Court was designated on 14, April, 2009 as
the adjudication authority of Money Laundering and Financing of Terrorism.
It is based on Kathmandu.
Financial institutions
have begun implementing preventive measures and have begun reporting suspicious
transactions and large cash transactions to the FIU. A National Coordination
Committee (NCC) has been established, made up of senior officials of a number
of stakeholder ministries and agencies.
The Committee’s role is to coordinate the national AML/CFT initiative
and to provide recommendations to the government for necessary improvements,
enhancements, and expansions of the initiative. The FIU serves as the
secretariat of the NCC and provides policy supporting it. A Standing Technical Committee is working
under the AML Rules, which consists of FIU, three regulators, department and
Police.
In August 2010, on the
recommendation of the National Coordination Committee, a high‑ level working
group was established to engage, with the assistance of the IMF, in the task of
elaborating a national strategy to combat money laundering and terrorism
financing.
Nepal government has
prescribed following Department and Offices as the government body for the
purpose of Section 2 (n) of Money (asset) Laundering Prevention Act, 2008.[53]
- Custom
Department and Offices subordinate to it
- Inland
Revenue Department and Offices subordinate to it
- Immigration
Department and Offices subordinate to it
- Department
of Transport Management and Offices subordinate to it
- Postal
Department and Offices subordinate to it
- Department
of Cooperatives and Offices subordinate to it
- Department
of Commerce and Offices subordinate to it
- Department
of Industries and Offices subordinate to it
- Department
for Education and Offices subordinate to it
Nepal Rastra bank has
issued directives to concerned institution to insurance company, bank and
financial institution, government bodies, casinos, money changer, cooperatives,
Securities Company or corporation and concerned institution to combat money
laundering.
Chapter
V
Analysis
of the Study
5.1. Analysis of Selected cases
Until
the enactment of the separate Money (asset) Laundering Prevention Act 2008,
there were some laws which were authorized to investigate such types of
financial offences. Nepal Rastra Bank Act 2002, Revenue Pilfers Control Act
1996, Narcotic Drugs Control Act 1976, and Foreign Exchange (Regulation) Act
1962, Corruption Control Act 2002 etc.
The
corruption Control Act 2002 mentioned the provision of fling the case if any
crime is determined to be falling under the category of money laundering. But
the term money laundering is not use. For instance the Commission for Investigation
of Abuse of Authority (CIAA) investigates such criminal activities and files
the case in Special Court and this is still in practice.
The
data shows that altogether 47 issues or complains are registered by revenue and
money laundering investigation department, till 15th April, 2011.
Among 47 issues only two cases were file in Special Court, in two cases both
are decided now. Out of 47 five issues kept in pending by Revenue and Money
Laundering Investigation department after investigation are kept abiding the
Money(asset) Laundering Prevention Regulation but while keeping them in pending
the department did not take Government attorneys opinion.
The
first case decided under this provision was of Nepal Government vs. Min Bahadur Ghele. In this case the government claimed to punish
offenders according to section 3 and 30 of Money (asset) Laundering Prevention
Act 2008. The Court decided that the crime was related to Foreign Exchange
(regulation) Act 1962 and it is also related MLPA 2008. It is prove that his
work is punishable, so that pursuant to section 30 the offender will be fined
Rs. 3,00,000/-.
The
second case was of Nepal Government vs.
Wu Lixiang. In this case the Government claimed that the amount of US$ 10,
00,000/- was deposited in the bank account of offenders in Nepalese Bank
account from America. The sources of the amount was not clarified hence it is
illegal so offender has been charged of money laundering crime. The Court decided that the crime is related
to MLPA 2008. It is prove that his work is punishable, so that pursuant to
section 30 the offender will be fined one year prison and Rs ………………….
5.2.
Critical analysis
Money laundering is a
multi-dimensional, constituting of both a national as well as an international
dimension; thus the typologies of money laundering are observed at both levels.
Money laundering on an international level necessitates it having a national
dimension as well. Money laundering may, however, be practices exclusively on a
national level. Also there exists a possibility of overlap between the national
and international dimension of laundering money. Money laundering requires
embracing of economic liberalization a consequence of which is greater
integration of financial and banking systems worldwide.
The international
dimension of money laundering is far more effective as compared to the national
dimension; it also becomes extremely difficult, if not impossible, to unravel
the complex web transactions in order to expose the origin of the money that is
the proceeds of the crime. The illegitimate proceeds so acquired are placed
into the financial system or retail economy or are smuggled out of the country.
The aims of the launderer are to remove the cash from the location of
acquisition so as to avoid detection from the authorities and to then transform
it into other asset forms, for example: traveler’s cheques, postal orders, etc.
The FATF
has identified four major threats represented by money laundering activity.
Firstly, that failure to prevent laundering makes it easier for criminals to
profit from their illicit activities. Secondly, such a failure permits criminal
organizations to finance further illicit activities. Thirdly, the ready use of
the financial system by launderers risks undermining individual financial
institutions and the entire system. Finally, the accumulation of power and
wealth by criminals and crime groups which is facilitated by laundering can
eventually pose a threat to national economies and democratic systems
Money
Laundering also was developed in order to facilitate trade.
Money laundering is the processes of making illegally-gained proceeds appear
legal. Typically,
it involves three steps: placement, layering and integration. The money is moved around to create
confusion, sometimes by wiring or transferring through numerous accounts.
Finally, it is integrated into the financial system through additional
transactions until the "dirty money" appears "clean." Money
laundering can facilitate crimes such as drug trafficking and terrorism, and
can adversely impact the global economy.
Laundering
diverts money from an illegal economy into needed and welcome investment in the
legitimate economy. There are many limitations to the success of law
enforcement and financial investigation efforts directed against money
laundering. Money laundering represents a serious threat then, not just to
sound economic and financial development but to the political integrity and
stability of our nation.
The sheer
magnitude of money laundering is such that it now ranks as one of the gravest
criminal threats to the global community, an effective framework
for AML and CFT have important benefits,
both domestically and internationally, for a country. These benefits include
lower levels of crime and corruption, enhanced stability of financial
institutions and markets, positive impacts on economic development and
reputation in the world community, enhanced risk management techniques for the
country’s financial institutions, and increased market integrity.
If money laundering is
prevalent in a country, it generates more crime and corruption. It also
enhances the use of bribery in critical gateways to make money laundering
efforts successful. Money laundering and terrorist financing can harm the
soundness of a country’s financial sector, as well as the stability of
individual financial institutions in multiple ways.
Money laundering has
challenged national and international peace, security, financial system, rule
of law, social justice, economic growth etc.Due to geographical differences it
is pertly hard to limit and control money laundering. It has created a great
challenge because it has diverse links, effects and consequences in each and
every aspect of the globe. Money laundering has heightened, it has become an
increasingly expensive, time-consuming process to undertake and ultimately
dangerous.
Money laundering crime
is directly related to organized crime. It is very hard to control. If it can
control or prevent these types of crime it will boost up the power in the citizens
other than the citizen involved in criminal activities. Anyone will have the
feeling of security in doing his business and profession respectfully. It will
help in peace keeping in the national and international society, harmonizing
international trading system, controlling corruption, revenue will be
increased, control the flow of currency to the foreign land and simplifying
foreign exchange rates in regular basis.
In
Nepal Money laundering has been in practice earlier. But there is not any legal
provision especial emphasis has been given in combating corruption. Nepal has
launched ‘Governance Reform Program’ since December, 2001.which have strong
provision for anti-money laundering . Finally the Money (Asset) Laundering
Prevention Act 2008 was enacted in January 1, 2008.
The
preamble of Money (Asset) Laundering Prevention Act 2008 provides that, it is
expedient to provide for legal provisions to prevent laundering of criminally
earned money (assets); the Legislature-Parliament has enacted this Act.
However, it is not sufficient to criminalize money laundering as a crime. In
modern society, before criminalizing any human conduct as a crime, some
condition must be fulfilled. Any conduct becomes wrongful if it is immoral and
it causes harm or seriousness to others or to actor him/herself. Secondly the
conduct must employ criminal law to condemn or prevent such conduct.
There is not any law
for the declaration of the source of money to the banking activities as deposit
or opening of the account, this has generated problem to inform about the
financial activities.
- Lack of rules and regulation in
relation to the declaration of source of income of any body
- Investigation officer cannot demand
the financial details directly.
- The institutions responsible for informing
about the doubtful activities are lacking honesty in their duties and
responsibilities.
- Lack of coordination among the
implementation departments and institutions.
- Lack of specialized and competent
professionals in the field of anti-money laundering.
On
the one hand self declaration of the property has been implemented and on the
other hand the need to declare the source of such property has created the fear
in common man.
Lack
of the special institution having competent and specialized human resources
which can look after anti- money laundering
Lack
of control over the illegally fostered hundy business.
There
are no laws, regulation or guidelines that specially ban financial institutions
in Nepal from entering into or maintaining correspondent banking relation with
shell banks.
There
is no proper measure to foster awareness about the money laundering its impact
to society. There no effective mechanism to provide the mutual legal assistant
to foreign countries. Co-ordination Committee is incomplete and only
recommendatory.
Nepal
has done significant improvement in theoretical part; however the
implementation part is very weak. The data of case filling on money laundering
proves this. Underground banking is famous in Nepal, therefore the problem seen
may be deeper in quantity, comparing to available data.
Open broader to India, lack of qualified human
resource and be deficient in highly advanced technology are some barriers to
control this crime in Nepal. High
level policy makers and enforcing officers have not been provided with relevant
training on money laundering and terrorist financing.
Chapter
VI
Finding,
Conclusion and Recommendation
6.1 Finding
Money laundering is a financial crime, with
the aim of making illegal money into legal in nature. It involves a method of
hiding, layering, and converting the money generated from criminal activities.
The criminals are often from high class and renowned persons in society. That’s
why, controlling money laundering is very challenging job. In this study I
achieved followings findings:
- The origin of
laundered funds are always from criminal or illicit activities which
include smuggling, counterfeiting,
frauds, for example the computer
supported frauds, benefiting
from insider trading, bribery, kickbacks and corruption, tax evasion,
economic scams, international economic crime, covert and overt invoicing
of trade transaction, bogus trade transaction to launder money through
round tripping, illegal arm sales, gun running, robbery, extortion, organized
crime, trafficking of human being,
prostitution, racketeering, migrant smuggling, counterfeiting currency,
illicit trafficking in stolen and other goods, embezzlement etc.
- Money laundering
affects the society in various ways among them impact on rule of law, impact on governance, impact on socio-
political situation, impact on macro economy, impact on financial system,
impact on financial institution, impact on economic liberalization, impact
on criminal legal system are major ones.
- The techniques of
money laundering are retail
businesses, charity shows, lottery tickets, casinos, property dealings,
securities market and stock exchange, insurance sectors, asset purchase,
blending of funds, bank involvement, use of false accounts, shell
corporation, establishment of companies, false export-import invoices,
underground banking, electronic transfer etc. Money laundering and terrorist financing are
directly related with each other. The laundered money flows to the
terrorist activities and sometimes money generated by terrorist activities
is also laundered.
4.
It is international business. In a short time,
criminals can pass their illegal proceed from one country to another. The
international community has identified this problem and made so many
instruments to check or counter-money laundering and financing of terrorism.
These standards are very strong while comparing to particular domestic
jurisdiction.
- Money
laundering is a lucrative business for those organized criminals. After
the completion of laundering process, such proceeds are used again to make
profit by engaging that money into organized crime and criminal
activities.
- In Nepal, the Money (Assets) Laundering
Prevention Act, 2008 and Money (Assets) Laundering Prevention Rules, 2009
was enacted. FIU was established with Nepal
Rastra Bank. The Government decided to establish separate Department for
investigation of Money Laundering cases. The Special Court was designated
as the adjudication authority of Money Laundering and Terrorist Financing. Nepal Government has widened the
varieties of predicate crime by amendment of MLPA.
- Nepal
Rastra bank has issued some directives to the concerned institution to
combat money laundering. Forty seven cases have been investigated and only
two cases have been filed in the court which had been convicted. Five
issues are still pending and other issues are under consideration.
- Nepal
is making its best efforts to improve its system. The Government has
formally expressed its commitment to FATF to overcome deficiencies by the
end of 2010. Tax or revenue evasion, corruption and frauds are supposed to
be generally higher in Nepal, where drug trafficking and human trafficking
follow them. Nepal
does not have Anti-Terrorist Act now in effect. Money Laundering has not been recognized
as extraditable crime in Nepal. There are no legal obligation or
guidelines on applying enhanced due diligence on accounts linked to
politically exposed persons.
- There are no laws,
regulation or guidelines that specially ban on financial institutions in
Nepal from entering into or maintaining corresponding banking relation
with shell banks. There is no proper measure to foster awareness about the
money laundering and its impact to society. There no effective mechanism
to provide the mutual legal assistance to foreign countries. Nepal has
done significant improvement in theoretical part; however, the
implementation part is very weak. The data of cases filed on money
laundering proves the results. Underground banking is famous in Nepal,
therefore, the problem seen may be deeper in quantity comparing to
available data. Open broader to India, lack of qualified human resources
and be deficient in advanced technology are some barriers to control this
crime in Nepal. High-level policy makers and enforcing officers have not been
provide relevant trainings on money laundering and terrorist financing
subject.
6.2.Conclusion
Money
laundering is a truly global phenomenon, helped by the International financial
community which is a 24-hour a day business. When one financial centre closes
business for the day, another one is opening or open for business.
It is increasingly evident that money laundering is a
growing problem in the world economy. Technological developments have
facilitated its growth, which is a trend that is likely to continue. However,
the actual growing threat is that of drug trafficking and other forms of
serious crime. The growth in these types of organized crime is generating
significant proceeds that need to be laundered back into the legitimate economy.
Both domestically and internationally, a broad consensus has emerged that
strategies should be directed towards undermining the economic power of the
criminals and organized crime groups involved. Domestically, governments need
to implement comprehensive anti-money laundering regimes that seek to increase
the awareness of this problem both within the government and the private
sector. Authorities must then have the necessary legal tools to undertake
investigations, to seize assets and communicate information among themselves
and with counterparts in other countries.
In
recent year, crime has become increasingly international in scope, and the
financial aspects of crime are complex as a result of the rapidly changing
advances in technology. Money laundering crime is an enormous and multifaceted
problem. It is not only a law enforcement problem but a national and
international security threat also.
Nepal
is highly vulnerable and riskier zone for money laundering because of the open
boarder system, towering practice of underground banking, insufficient rules
and regulation, fragile implementation scenario, inability to use advance and
modern technologies etc.
It
directly affects transparency, financial stability, financial governance,
foster misuse of foreign exchange, distracts foreign investment, promotes
capital flight support trade loss and boost- up the morale of predicate
criminals.
Accepting
the seriousness of this crime, Nepal has introduced the Money (Asset)
Laundering Prevention Act 2008. It has fully been committed to walk with
international community with holding her hands to them to combat this crime.
For this purpose, Asset Laundering Prevention Rules 2009 have been passed,
financial information unit has been established, Separate Money Laundering
Investigation Department has been established, and Special Court has been
designated as adjudication authority.
6.3. Recommendation
1. International
standards suggest that making ML as an extraditable crime, though it has not
been recognized in existing Nepalese Act. The crime of money laundering cannot
be tackled down without international efforts. The nature and characteristics
are not same as the traditional crime, being sincere to its cross broader
nature, there is a need to define it as extraditable crime. Furthermore, FATF
recommendation suggests that the procedure of extradition should be made
simpler to combat this crime.
2. FATF
recommendation suggests enacting Mutual Legal Assistance Act, Extradition Act
and Organized Crime Act. It is under consideration, so it is necessary to pass
these laws quickly.
3. Development
and promulgation of further anti-money laundering strategy covering national
and international levels is necessary.
4. More
technical and financial assistance should be made available.
5. Effective
money laundering enforcement programme should include increased multilateral
cooperation and mutual legal assistance in money laundering investigation and
prosecution.
6. There
is need to operate training and awareness program to sensitize people about the
effect and seriousness of these types of crime.
7. Policy
should be made in which when anyone deposits the amount he/she should also
submit the evidence of the source of that particular amount.
8. Specific
limitation should be determined and policy should be implemented to do all
kinds of financial activities in a cheque.
9. Section
29 of Money (asset) Laundering Prevention Act
is against jurisprudence hence it urgent to be review.
10. Organized,
national and international trainings and seminars to develop the capacity of
human resources.
11. Expanded
the anti-money laundering program requirements to all financial institutions
should be made.
a.
strengthen international
co-operation on information exchange and law enforcement;
b.
proper mechanisms for
handling suspicious reports;
c.
a compliance culture among
financial institutions; and to ensure that they put proper systems and
procedures in place;
d.
encourage financial
supervisors to apply bank licensing procedures strictly, exchange information,
and train practitioners;
e.
increase public awareness of
the threat from money laundering;
f.
increasing co-ordination
between the multiple agencies (national and international) involved and to
improve the limited intelligence sharing;
g.
separate office should be
established with sophisticated scientific equipment in an integrated way so
that the investigation, prosecution and financial unit could work together
effective in a result-oriented way to combat money laundering activities. It is
very important for the effective implementation of the laws on money laundering
in Nepal without which the law does not play much role that is expected from
it.
h.
increase the limited human
resources involved in the labour intensive and time consuming work of
investigating suspected violations;
i.
implementation on a
world-wide basis of a consistent set of policies. (e.g. FATF 40
Recommendations)
j.
focus on new technologies
and increase countermeasures to combat their use for money laundering.
k.
share forfeited proceeds
with law enforcement agencies. (a particular police gripe)
l.
introduce measures that make
the movement of money more visible.
Bibliography
APPENDIX
Comprehensive substantive provisions
 |
Competency in government
agency
Independently working environment for government
personnel
Government initiation and support for professional expertise
Client friendly procedure in antimony laundering Act
Bankers
Descriptive
Statistics
|
||||||
N
|
Minimum
|
Maximum
|
Mean
|
Std.
Deviation
|
||
CSP
|
5
|
2
|
3
|
2.60
|
.548
|
|
CGA
|
5
|
2
|
3
|
2.60
|
.548
|
|
CPP
|
5
|
2
|
4
|
3.20
|
.837
|
|
IGP
|
5
|
3
|
4
|
3.80
|
.447
|
|
GISPE
|
5
|
3
|
3
|
3.00
|
.000
|
|
Valid N (list wise)
|
5
|
|||||
Lawyers
Descriptive
Statistics
|
||||||
N
|
Minimum
|
Maximum
|
Mean
|
Std.
Deviation
|
||
CSP
|
5
|
3
|
5
|
3.40
|
.894
|
|
CGA
|
5
|
2
|
4
|
2.80
|
.837
|
|
CPP
|
5
|
2
|
3
|
2.60
|
.548
|
|
IGP
|
5
|
2
|
4
|
3.20
|
.837
|
|
GISPE
|
5
|
2
|
3
|
2.20
|
.447
|
|
Valid N (list wise)
|
5
|
|||||
Court
Descriptive
Statistics
|
||||||
N
|
Minimum
|
Maximum
|
Mean
|
Std.
Deviation
|
||
CSP
|
5
|
3
|
5
|
4.00
|
.707
|
|
CGA
|
5
|
2
|
3
|
2.80
|
.447
|
|
CPP
|
5
|
2
|
4
|
2.80
|
1.095
|
|
IGP
|
5
|
2
|
4
|
2.80
|
1.095
|
|
GISPE
|
5
|
1
|
3
|
2.20
|
.837
|
|
Valid N (list wise)
|
5
|
|||||
Investigator
Descriptive
Statistics
|
||||||
N
|
Minimum
|
Maximum
|
Mean
|
Std.
Deviation
|
||
CSP
|
5
|
3
|
4
|
3.60
|
.548
|
|
CGA
|
5
|
2
|
3
|
2.80
|
.447
|
|
CPP
|
5
|
2
|
3
|
2.40
|
.548
|
|
IGP
|
5
|
3
|
5
|
4.00
|
.707
|
|
GISPE
|
5
|
2
|
4
|
3.00
|
1.000
|
|
Valid N (list wise)
|
5
|
|||||
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Administration, ,127.
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[49] John L. Evans, Ph.D.APRIL8,1997BANKERSCLUB, by International Efforts To Contain Money Laundering presented at the
Seminar "Money Laundering: Joining Forces To Prevent It" http://orgcrime.tripod.com/genmlinteff.htm
15/04/2011
[50] http://www.egmontgroup.org/about
[51] Hari Kumar Nepal, Money
Laundering, Financing of Terrorism and International Efforts (2009), year
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[53] Nepal gazette, Part 5 Nepal Government, Section 58,no. 50
date 2065/12/17
Great post. Thanks for sharing.
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