It has been seen that the provision of mandatory submission of bank statements of buyers and sellers in buying and selling real estate will not be implemented immediately. Officials of the Ministry of Lands say that there is a discussion about whether to postpone or amend the provision in the interest of the Prime Minister and Cabinet Office.

The Department of Land Management and Records has approved the directive 2082 issued on June 13 regarding prevention of financial investment in money laundering and terrorist activities. The department has also issued a 'circular' in this regard to land reform and land reform offices and land transport offices across the country on May 14. Since then, there has been a difference of opinion between the government agencies regarding the mandatory submission of bank statements of buyers and sellers in real estate transactions.

According to land ministry sources, the department has given instructions to control matters such as showing low prices at the land office but large amount of real estate transactions. But what to do after the directive from the Prime Minister's office is being discussed internally, sources said. "We are in favor of not postponing it immediately, this should be done sooner or later," the source said, "but we are in discussion because of the unofficial instructions from the Prime Minister's Office, whether to amend or postpone it?"

Nepal has been included in the gray list of the Financial Action Task Force (FATF). Nepal has two years to remove the country from the list. An action plan has also been made for this. According to the same action plan, the department has issued an asset clearance directive regarding real estate transactions. "During the transaction of real estate purchase and sale, the indexing organization must attach a written proof that the amount equivalent to the transaction has been deposited from the buyer's bank account to the seller's bank account," the directive said.

It is being discussed whether to immediately implement the mandatory submission of bank statements and KYC of buyers and sellers in buying and selling real estate. "When dealing with the purchase and sale of real estate, the index organization must fill in the KYC form of both the buyer and the seller and upload it in writing to the system, such KYC forms must be filled in the system by the land service center in the offices where the land service center is implemented and by the service desk of the office in the office where the land service center is not implemented," the instructions said. Phaninder Gautam, Secretary of the Office of the Prime Minister and Council of Ministers, said that the department has implemented hasty and immature instructions. There is a provision that both the receiver and the giver must file a bank statement, there is also a matter of filling KYC, which is not met. It is in the process of being postponed, he said. 

The Act on Asset Laundering stipulates that real estate businessmen should limit their business over a certain area and a certain amount, issue permits, and allow only those companies to work. He said that since the bank statement is a private matter of a person, a separate legal basis is needed to bring it out. 

He told the department not to implement the KYC issue immediately, but to proceed with the work only after the registration process of the real estate business is started and the license is obtained.

"They should do it by Friday, a decision will be made on Friday," he said. Now, when buying and selling real estate, transactions above 10 lakh rupees and up to 50 lakh rupees will have to be done through banking system or electronic payment system. But the transaction of more than 50 lakh rupees should be done directly through electronic payment system and through check through 'good for payment' check drawn in the name of the seller. Similarly, in case of real estate transaction, if the document of Bainabatta certified by the local level is submitted, if there is a Bainabatta of more than 10 lakh rupees, the department has asked to submit the details of the transaction from the buyer's bank account to the seller's bank account through the electronic system along with the Bainabatta document.