The Nepal government intends fusing anti-money laundering laws into the Cooperative Act 2017 to stop shady transactions in the cooperative sector, reports Kathmandu Post.
The government says the move is strictly aimed at checking investments using money earned through shady transactions. A government source is quoted saying many individuals are laundering their black money through cooperatives.
It is worth mentioning that the government had earlier brought in a new Act to bring cooperatives under a new legal framework. The government also issued the Directive on Money Laundering Prevention for Cooperatives in March this year subjecting the cooperative sector to the government scrutiny.
There are 34,512 cooperatives operating in Nepal including 14,000 savings and credit cooperatives. More than 600 cooperatives are estimated to have an annual turnover of Rs 50 million and above.