User:Prem Raj Bhusal/sandbox

Abstract

Money laundering is a borderless crime and has a global network. Laundering means to wash, to make something clean, to abolish the stain. By the process of laundering one form of objectives can easily be transformed and changed Money laundering refers to the process of washing, cleaning or converting the unlawfully earned money into legal form, it is a process by which illegally obtained, earned and received money is transferred into white money It decorates the illegal proceeds with the veil of legitimate sources. Generally, the sources of money laundered are believed to have been from trafficking in women/children, smuggling, drug dealing, prostitution, bribery and corruption. economic scam, organized crime, fax evasion, credit card frauds, counterfeiting of goods and currencies etc. Generally, Money Laundering covers the areas and subjects of physical, geographical, technical, personal and organizational. In countries like Nepal, it has been found to have comparatively a negative impact and become a Centre of attraction for criminals. However, the affected areas of money laundering have been generalized and it degrades the Gross Domestic Product of country, it reduces transparency of governance system, it destroys financial stability of fiscal management, it creates instability and unpredictability in revenue and taxation, it detracts investigation system, it increases capital flights of nation, it increases trade deficits in huge numbers. it destroys rules and regulations, supervision and legal action of government authority, if destabilizes and disbalances foreign exchange rate the volume of corruption, loses the national trust and confidence and makes the criminal be more powerful.

Chapter I

1.1	Introduction

Every society has certain norms, customs, traditions and beliefs which are vigorously accepted by its members for their well-being and development Infringement of these norms and customs is condemned as anti-social behavior. Thus, crime is an anti-social, immoral or punishable behavior and the state reacts against the criminal on behalf of the victim. In a strict sense crime is an act committed in contravention to criminal law1. It connotes in essence, therefore, crimes are accusation, unjustifiable and inexcusable human conduct which is restricted, punished, prohibited and not permitted by law.

Organized crime is an act committed by two or more criminals as a joint venture. Money laundering is an act of concealing, altering or manipulating the actual source of property which is acquired by an illegal source.2 State machinery power is misused from various complex and multi-cycle processes, which negatively affect the shape, existence, creditability, balance and development of the country's financial system and global financial system

According to Black's Law Dictionary, "Money Laundering is the act of transferring illegally obtained money through legitimate people or accounts so that the original source cannot be traced."3

1.Madhav Prasad Acharya & Ganesh Bhattarai (2014), Criminal Jurisprudence. 2. Ramhari.Nepal (2018). Money Laundering as Organized Crime: Issues and Practices. Nepal Law Review. 3. Black's Law Dictionary 2004

Money laundering in a strict sense refers to the conversion or transfer of property. one is aware of the fact that such property is obtained from illegal activity for the purpose of disguising or concealing the illicit origin of property or for assisting any person who is the commission of such activity the legal consequences of such action.4

In order to bleach or launder such money and property, criminal try to use product available in the bank, financial institution, insurance, securities cooperatives, real estate also use the corporate bodies like lawyers, bankers, accountants, politicians, bureaucrats, industrialists, real estate builders and sectors like NGOs, INGOs and FDI. These are the new class of criminals providing laundering services. Investment and trade-based money laundering are the most sensitive and highest laundering machine by which all countries are not only suffering but Nepal has become the victim of money laundering. In criminal jurisprudence, Money laundering is considered as a financial crime, with the intention of making illegal money turning into legal form, transferring black money into white, cheating the government and public and giving input for criminals. It is a transactional business. Nepal encounters a number of money laundering and terrorist financing risks.5 Money laundering has recently emerged as transnational organized crime. particularly as a multi-dimensional financial crime in the field of criminal jurisprudence. It has been developing very rampantly worldwide threatening global economic stability.6

Money Laundering is a burning issue. The voice has risen after the people's movement in 2008. The Money Laundering Prevention Act was promulgated in 2008. In addition to the definition by the Act, money laundering is that aspect of financial transactions where the real origin and source of the money or property earned by criminal or illegal activities is concealed. A new legal source is made in order to launder or endeavor to launder the ill-gotten proceeds.7 4. United Nations Convention Against Illicit Trafficking in Narcotic Drugs and Psychotropic Substances. 5.Laxmi Narayan Dhungel. (2018-19). Money Laundering as Organized Crime: Issues and Practices. Nepal Law Review. 6.Laxmi Prasad Mainali, (Prof. Dr.) & Khadka, Chandra Shekhar. (2018). Concept of Money Laundering and Nepalese with Anti-Money Laundering Initiatives: An Insight. Nepal Bar Council Law Journal. 7. A Brief Introduction Of Development of Money Laundering Investiogation, available at:www.mof.gov.np In the context of Nepal, it is a crosscutting as well as contemporary issue. Money laundering is also a kind of cybercrime in which money is illegally downloaded in transit. It has an adverse impact on the economy and political stability of the country. Hence

such activity must be curbed with an iron hand. Political and economic factors play a major role in combating Therefore, nations throughout the world must join hands and adopt measures to dismantle those syndicates engaged in money laundering by aggressive enforcement of law.

Money laundering describes the process by which criminals disguise the identity, original ownership, and destination of money obtained through illegal activities. The goal is to make it appear that these illicit proceeds have originated from a legitimate source. In simple terms, money laundering involves a series of financial transactions intended to transform ill-gotten gains into legitimate money or other assets. The process typically involves three stages: Placement, Layering, and Integration.

1.2	Statement of problem

Despite existing legal frameworks and institutional measures, Nepal faces significant challenges in effectively combating money laundering. These challenges include regulatory gaps, institutional weaknesses, limited technological infrastructure, and insufficient international cooperation. This proposal aims to assess the current AML measures in Nepal, identify the key challenges, and provide recommendations to strengthen the AML regime.

1.3 Research Question

Focusing on anti-money laundering (AML) efforts in Nepal, you can formulate research questions that address the unique challenges, regulatory environment, and effectiveness of these measures within the country. Here are several research question ideas tailored to Nepal's context: The research aims to address the critical question of how effective Nepal's current anti-money laundering (AML) measures are in preventing and mitigating money laundering activities within its financial system. This involves exploring the specific challenges and obstacles faced by financial institutions and regulatory bodies in implementing AML regulations, assessing the impact of these measures on various sectors such as banking, real estate, and informal financial markets, and evaluating the overall compliance with international AML standards set by organizations like the Financial Action Task Force (FATF). Additionally, the study seeks to understand the socio-economic implications of AML efforts on Nepal's economic stability and development, identify any gaps in the existing legal and regulatory framework, and propose actionable recommendations for enhancing the effectiveness of AML strategies in Nepal.