Section 30: Punishment for Offence of Money Laundering or Terrorist Financing

1) Any person who has committed a money laundering offence pursuant to sub-section (1) of section 3 shall be fined twice the proceeds and imprisoned from two years to fifteen years as per the gravity of the commission of the act.

2) Any person who has committed any offence of conspiracy to commit money laundering pursuant to subsection (2) of section 3 shall be punished pursuant to sub-section (1), and a person committing other offences under sub-section (2) of section 3 shall be punished half of the subsection (1).

3) Any person who has committed any offence of terrorist financing pursuant to sub-section (1) of section 4 shall be imprisoned from seven years to twenty years as per the gravity of the commission of the act and fined five times the proceeds, if it is apparent and fined up to fifty million NRs if such proceeds are not apparent.

4) Any person who has committed the offence pursuant to sub-section (2),(3) or (4) of section 4 shall be half of the sub-section (3).

5)  If a person commits the offence of Money Laundering (ML) or Terrorist Financing (TF) through or by the use of a legal person, such person, official, or staff shall be punished pursuant to sub-sections (1), (2), (3) or (4).

6) The chief of legal persons working during the period of commission of the offence shall be punished pursuant to prevailing laws if the particular person committing such offence is not traced out as per sub-section (5).

7) Punishment to a public servant or chief or staff of a reporting entity shall be punished ten percent more of the punishment stipulated in sub-section (1), (2), (3) or (4) if he is found to have committed the offence of Money Laundering (ML) or Terrorist Financing (TF).

¹7A) A person who, having reasonable grounds to know that an offence under this Act may be or is about to be committed, is under an obligation to prevent the commission of such an offence, shall, without discharging his obligation to prevent the commission of such an offence, be liable to imprisonment for a term which may extend to one year.

8) If any legal person or arrangement commits any offence of money laundering or terrorist financing, one or all following punishments shall be awarded based on the gravity of the offence:

(a) Fine up to five times the fine stipulated in sub-section (1), (2), (3) or (4), or

(b) Prohibiting public procurement by prescribing time limit,

(c) Prohibiting subscribing goods or services by prescribing time limit,

²(d) ___________________,

(e) Cancel or evoke license or permission,

(f) Liquidating legal person.

9) If anyone who violates any provision of this Act and rules issued thereunder beyond sub-section (1) to (8) shall be punished with the confiscation of property and a fine equal to that, and if the property is not apparent, fine up to NRs. one million.

¹10) If any person is found to be a beneficial owner in the offence pursuant to this Act, he shall be punished in accordance with this section.

^{1 Amendment to the Prevention of Money Laundering and Promotion of Business Environment Act, 2080.}

^{2 Externing from the Prevention of Money Laundering and Promotion of Business Environment Act, 2080.}