Entrepreneurs’ Organization (EO) Nepal has organized a learning event entitled Anti-Money Laundering and Terrorist Financing (AML/TF) in Nepal for young entrepreneurs. The event basically focused on differentiating between money laundering and tax evasion, legal frameworks and the business sector’s contribution to controlling it. 

Chief speaker Hari Kumar Nepal, deputy director of the Financial Information Unit of Nepal Rastra Bank, said that the government was fully committed to controlling any form of financial crime including money laundering and tax evasion. 

“AML/TF is now not an issue for Nepal only, it has attracted the attention of governments all over the world and international organizations,” he said. “The government is serious about this matter and will leave no stone unturned to eradicate such practices.”

He added that money laundering had harmed not only the business sector but also politics and administration.

“Surveys show that more than 3.6 percent of the global GDP is earned through criminal activities. If we add the amount of tax evasion to it, the result is shockingly high,” he added. “But one has to be aware of the fact that each and every business started with black money is a crime. And one cannot get peace of mind with black money.”

Although we still lack concrete measures of financial crime in Nepal, there is very little chance that one can escape from this crime, he said. Tax evasion supported by corruption is the biggest challenge for Nepal. It starts right from an ordinary landlord showing low rental charges to evade tax. “So, it is very difficult to bring this all on track.” According to Deputy Director Nepal, the government has introduced some measures to check money laundering. “We will soon have regulations that will ban cash transactions of more than Rs1 million and prevent savings accounts from being used for business transactions. We hope that this will help to control money laundering,” he added.

The event was followed by an interaction session where young entrepreneurs and EO members shared their views on how the business sector could work with the government to control financial crime.