Kathmandu – To tackle money laundering and the financing of terrorism, the government has introduced stricter rules for real estate. From now on, land transactions will go through tighter checks and be more closely monitored across all Land Reform Offices and Land Service Centers.

Under the new directive, anyone involved in a land deal must fill out a Know Your Customer (KYC) form and provide proof of financial transactions—such as bank records—before any paperwork is processed.

Simply bringing in documents won’t be enough anymore. Where there’s no land service center, a help desk must be set up to assist with these formalities.

If the value of a land deal is more than Rs one million, the payment must be made through the banking system or electronically. For transactions over Rs 5 million, the buyer must issue a ‘Good for Payment’ cheque in the seller’s name and submit a bank statement showing the money transfer.

Taxes, registration fees, and other charges must be paid separately from the buyer or seller’s own account directly into the government’s revenue system.

The Department of Land Management and Records issued the directive on Jestha 13, replacing an earlier one from 2081 BS. Land offices are now required to report any transaction worth Rs 30 million or more to the Financial Information Unit (FIU) at Nepal Rastra Bank.

Any deal that looks suspicious must also be reported.

The government says these changes are aimed at increasing transparency and accountability in the property sector, which has long been a hotspot for shady financial activity.

The new directive comes on the recommendation of the Money Laundering and Revenue Investigation Division, working in coordination with Nepal Rastra Bank and other government agencies.

The Department has instructed land offices to put the rules into practice without delay and warned that failure to comply will lead to action under the law.