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Nepal – New Ultimate Beneficial Owners reporting requirements
As of the 12th of April 2024, companies in Nepal are required to report and register their Ultimate Beneficial Owners (UBO).
The introduction of the ‘Act to Amend Some Laws Related to Prevention of Money Laundering and Promotion of Business Environment [2023]’ amended sections to the Money Laundering Prevention Act [2008] and now makes it mandatory for existing companies to report beneficial owners (“Actual Owners” in local terms).
“Actual Owner” refers to a natural legal person who is the ultimate beneficiary or owner having direct or indirect ownership, control, power to direct or influence customer, business, property, legal person or legal arrangement.
In case it is not possible to identify a natural person as “Actual Owner”, in practice, along with the details of the ultimate holding company, the details of the controlling director(s) of such a company is submitted.
The requirements apply to a company, cooperative, private firm, partnership firm or a legal person of any other kind that is being/has been incorporated, registered or established. This includes branch and representative offices.
Existing entities are required to register their UBOs by the 11th of April 2025, while entities being incorporated at this moment are required to provide UBO data as part of registration procedure.
The risk of non-compliance
Entities who fail to provide UBO details or provide false information face the risk of:
- Capital invested by the “Actual Owner” being seized by the regulatory authority
- Fines from NPR 1,000,000 to NPR 5,000,000, levied at individuals
Did you know there are now 106 countries around the world with UBO reporting requirements?
Download Mercator’s UBO: Special Report for insights and top-tips on navigating UBO compliance around the world.
Or for more information about Mercator’s UBO services contact mercator@citco.com
