The government has reversed its recent directive mandating the submission of bank statements for land and property transactions, following intervention from the Prime Minister’s Office. The rule, introduced just a week earlier by the Department of Land Management and Archive, aimed to tackle money laundering but faced immediate resistance.
Enforced on May 22, the original directive required buyers and sellers to submit both bank statements and KYC (Know Your Customer) documents. Under the revised policy, circulated on Sunday, parties may now provide alternatives such as good-for-payment cheques, bank guarantees, e-payment records, or certified deposit vouchers instead of full bank statements.
However, transactions below Rs 5 million must still be routed through formal banking channels, and those exceeding Rs 10 million will be closely monitored, with details submitted to Nepal Rastra Bank (NRB).
Officials cited privacy concerns and administrative challenges as key reasons behind the rollback. The PMO had reportedly called in representatives from the land ministry and department, emphasizing that the mandatory submission of bank statements could infringe on personal privacy and complicate transaction processes.
Further revisions include increased flexibility in revenue payment methods and the elimination of a requirement for buyer-seller bank transaction records for deals above Rs 1 million tied to advance contracts certified by local governments. Additionally, the clause requiring NRB reporting for transactions exceeding Rs 30 million in a single day has been revised to cover deals over Rs 10 million.
The rollback is seen as part of Nepal’s ongoing efforts to meet Financial Action Task Force (FATF) standards and avoid inclusion on the FATF grey list.
