Cooperatives in Nepal have been brought under the Money Laundering Prevention Act a decade after the law was passed, reports The Kathmandu Post.
The Department of Cooperatives has enforced the Directive on Money Laundering Prevention for Cooperatives, opening the cooperative sector to government scrutiny.
There are 34,512 cooperatives operating in the country including 14,000 savings and credit cooperatives. In 2016, they held deposits totalling Rs302.2 billion and issued loans worth Rs274.2 billion, according to government statistics.
More than 600 cooperatives are estimated to have an annual turnover of Rs50 million and above. According to the department, it has formed a separate cell to enforce the law in an effective manner.
