In a move to prevent the use of illegally-earned money in the real estate sector, the Government of Nepal has introduced stricter regulations for land and property transactions. The Department of Land Management and Archive (DoLMA) has directed concerned agencies to enforce a new rule requiring both buyers and sellers to submit their bank statements. All transactions must be conducted through the banking system to ensure transparency.
Additionally, the government is expanding its scrutiny to various sectors—including banking, foreign exchange, education, pharmaceuticals, insurance, cooperatives, and real estate—amid growing concerns about money laundering. Consumer rights groups have pointed out that the sharp rise in property prices is evidence of illegal funds being funneled into real estate.
A report by the Financial Information Unit (FIU) of Nepal Rastra Bank revealed a significant increase in suspicious real estate transactions, with 6,255 cases reported in 2023 and 9,304 in 2024. In response, the DoLMA has instructed Land Revenue Offices to report any land transactions exceeding Rs 30 million to the FIU and to prohibit cash transactions over Rs 1 million. It also mandated that both parties involved in real estate deals must update their Know Your Customer (KYC) information.
These measures are part of Nepal’s broader strategy to align with international financial standards and to get delisted from the Financial Action Task Force (FATF) grey list by mid-February 2026. Nepal was placed on the grey list during the FATF Plenary in February 2025 due to insufficient safeguards against money laundering.
