The government has made it mandatory for both buyers and sellers to provide bank statements and complete Know Your Customer (KYC) forms before property deeds can be registered. According to the Directive on the Prevention of Money Laundering and Financing of Terrorist Activities, 2025, issued by the Department of Land Management and Records (DoLMR) under the  Ministry of Land Management, Cooperatives, and Poverty Alleviation, all real estate transactions must include bank statements verifying that funds have been transferred from the buyer’s account to the seller’s account. 

The move is aimed at strengthening anti-money laundering measures and removing Nepal from the Financial Action Task Force (FATF) gray list. The FATF Plenary held in February placed Nepal on its ‘gray list’ due to concerns about the country’s anti-money laundering (AML) and counter-terrorism financing (CFT) measures, particularly in high-risk sectors like real estate and cooperatives. The finance ministry is implementing plans to remove Nepal from the gray list.

Likewise, all land and property transactions exceeding Rs 30m in a single day must now be reported to the Financial Information Unit (FIU) of the Nepal Rastra Bank (NRB). Land revenue offices will also have to report suspicious transactions to the FIU. The directive was issued as per Section 7 (2) of the Anti-Money Laundering Act, 2008. As per the Act, the DoLMA is the regulating agency for the real estate sector. 

The DoLMA has issued a circular to all land revenue and land reform offices to enforce these measures immediately. As per the directive, any land and housing transactions between Rs 1m to Rs 5m  must be conducted through banking or digital payment systems, while those exceeding Rs 5m must use electronic payments or ‘good for payment’ checks issued directly in the seller’s name.

Additionally, for offices equipped to collect revenue through banks, registration fees and charges for transactions above Rs 1m must be paid from the buyer’s account, while capital gains tax must be deposited from the seller’s account into designated government revenue accounts. The ministry believes these measures will curb money laundering, ensure accurate transaction records, prevent tax evasion, reduce corruption in land revenue offices and promote transparency in Nepal’s economic system. 

In the first nine months of fiscal year 2024/25, Nepal saw a total of 380,175 land and housing transactions. The government mobilized Rs 33.2bn in revenue from these transactions.