Published on 2011-08-06 02:00:12 

REPUBLICA

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=34352

KATHMANDU, Aug 5: The government on Friday formally inaugurated the Department of Money Laundering Investigation (DoMLI), expressing commitment to control legalization of illegal money and check possible terrorist financing from Nepal.

So far, the government was overseeing financial crimes like these through the Department of Revenue Investigation. It was forced to set up a full-fledged department after the Asia Pacific Group of Financial Action Task Force (FATF) that oversees money laundering issues tagged Nepal as the most vulnerable spot in South Asia. 

“We established the department also because we needed a strong authority to control rising financial crimes and take action against people amassing a lot of money through illegal activities,” said Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari.

With the department into operation, Adhikari said the government will now start seeking sources of income of people that have amassed huge property and have turned rich overnight, but without strong formal sources of income.

Fundamentally, officials said people that lead a lavish lifestyle, but lack strong legal source of income will be in the department´s radar. “Our message is clear: now people will not be able to project their social status or win position just because they have massive property; they will need to prove that they earned it genuinely,” Adhikari said, adding that the establishment of the department is just an initial step toward this direction.

Governor of Nepal Rastra Bank Dr Yuba Raj Khaiwada said the department´s effectiveness will eventually force society correct its perception toward wealth, thereby promoting healthy businesses, ensuring social justice.

“The department was much needed to ensure good financial governance,” Dr Khatiwada stated.

But for its effectiveness, he along with Finance Secretary Krishna Hari Baskota underscored the need to maintain moral of government staffers high and ensure better coordination among financial sector regulators, Nepal Police, revenue administration and Special Court, and committed governmental efforts.

Apart from that, they also stressed the need to enhance capacity of the department´s staffers and improve their effectiveness by increasing access to information and technology.

“To ensure that, we are soon finalizing a five-year strategy to fight anti-money laundering,” said Baskota.

The strategy, according to officials, will focus on building national database of households and firms´ property, and expanding tax net, among others, so that DoMLI could have a well established base to intensify its action.

For now, DoMLI has taken over 131 cases related to money laundering from the Department of Revenue Investigation (DRI).

“We will expedite investigations of those cases and also take steps to strengthen our coordination and deepen our network so that we could launch action against dubious financial dealmakers,” said Khum Raj Punjali, director general of the DoMLI.