3.5 Money Laundering

The definition: the dirty money's cleaning — the proceeds' conversion into the legitimate-looking assets; the three stages' classic (the placement, the layering, the integration). The predicateoffences' concept: the laundering follows the underlying crimes (the AML Act's schedule — the drug, corruption, fraud, trafficking faces). The law: the Asset (Money) Laundering Prevention Act 2064 (amended) — the offence-and-punishment; the reporting institutions' duties (the banks, the insurers, the securities — the KYC-and-STR faces); the FIU's machinery (the NRB's unit — the suspicious reports' analysis); the DMLI's investigations; the seizure-and-forfeiture faces. Theinternational frame: the FATF's forty recommendations (the standards' bible); the APG's peer reviews (the grey-list stakes — the reputational costs). The Nepali audit: the compliance's growth (the bank's KYC culture) against the cash economy's-and-the-informal channels' challenge (the hawala's regulation questions).