Money Laundering Problems, Their Implications and

Governments Efforts in the Nepalese Context

(Abstract Copy)
Now a days, the concept of welfare state has been replaced by the new paradigm of change
management. Globally speaking, all states are found heavily influenced by the enormous of
changes that are taking place in every sphere of life. The concept of reinventing the role of
government by focusing "State without government is being highly emphasized these
days. Frequently occurring opinion as to "why we should to obey the government if it is
not sincere enough to seise it's people honestly?" has been the subject of common
discussion everywhere. Now, state power is thought as public property. Hence, all works
performed by the concerned government need to be transparent and accountable, and that
these should be based on rule of law and people's participation. In broad spectrum, government
functions in recent years has witnessed a metamorphosis from it's emphasis on traditional

welfare state to a modern good governance system especially in democratic societies to the
good governance program (GRP). Keeping all these phenomenon in mind, Nepal decided to
control corruption of all kinds as and also to correct other elements found in the Nepalese

society. In the process of achieving this objective, the Government of Nepal has included the
GRP in its tenth five year plan document as a main pillar of the Poverty Reduction Strategy

Papers (PRSP). Preventing, controlling and eliminating corruption are reflected in the
objectives of GRP and creation of corruptionless society has been the major vision and
state desire of Nepal.
For controlling corruption, multidimensional aspects need to be considered. Being a
national disease, it has tremendous effect on destroying social structure, social values and
social system. The transformation of a state's desire of controlling corruption, therefore in
reality requires addressing properly every aspects of the society. While talking about the
process, laundering illegal earnings and integrating it in real life has helped immensely in
the growth of rampat corruption in most part of the world. So measures for anti-money
laundering and anti-corruption should move simultaneously.
This paper is organized in parts. In the first part, efforts are made to provide conceptual
clarity; on money laundering and also information how it has been defined and interpreted
in most part of the world ? How serious the problem is ? and estimation of the size also
are provided. In the second part, techniques of laundering black money are dealt in brief.
At this stage, techniques used in the banking sectors such as (bank drafts, telegraphic
transfer, loan

back system), depositing small amounts in various accounts, and in non-banking sectors,
such as under ground banking system, criminal cash deposits, real estates dealers, frauds
forgery cases, excessive layers of financial transactions are explained. Likewise, counter
measures for combating it such as legal financial as well a5 lllw enforcement are cited in
brief. In the third part, the present status of this problem in Nepal, realization and
commitment of Nepal for addressing this problem as well as other responsibilities of the
state to work together with the regional and international sectors are examined in the
Nepalese as well as in the global context. Its effects are felt in society, economy, financial
sectors, external stability, and private sector. At the end, the conclusions are presented. It is
thought that money laundering has been a major stumbling block; for the creation of purity
in social system, for effective control of revenue leakages and providing effective
governance resulting in poverty reduction, mitigating the creation of chaos in the social
structure. So His Majesty's Government of Nepal has become quite serious to combat this
problem effectively. Covering above issues, the author of this paper would like to present
power point with the burning issues and would like to answer any queries of the
participants of the August gathering, may have in the discussion later.

(Shyam Prasad
Mainali) Joint Secretary
Ministry of General
Administration

Thank you for using www.freepdfconvert.com service!

Only two pages are converted. Please Sign Up to convert all pages.
https://www.freepdfconvert.com/membership