Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Securities Board of Nepal (SEBON) has imposed monetary penalties on three share brokerage firms for violating provisions related to anti-money laundering regulations, reinforcing regulatory scrutiny in Nepal’s capital market.
According to SEBON, the action was taken against Cipla Securities Nepal, Shree Krishna Securities, and Hatemalo Financial Services for breaching legal provisions under Nepal’s anti-money laundering framework.
The market regulator has fined Cipla Securities Rs 5 million, while Shree Krishna Securities and Hatemalo Financial Services have each been penalized Rs 3 million.
In a regulatory notice, SEBON stated that the firms violated provisions of the Asset (Money) Laundering Prevention Act 2008 (Nepal). Specifically, the brokers were found to have breached Sub-section (4)(d) of Section 7A and provisions of Section 7G of the law. Based on these violations, the board imposed penalties under Section 7F(1)(b) of the same Act.
“Since the companies failed to comply with the legal provisions related to the prevention of money laundering, financial penalties have been imposed in accordance with the applicable law,” SEBON stated while announcing the action.
The regulator said the move aims to ensure effective implementation of anti-money laundering measures within Nepal’s securities market and to strengthen regulatory compliance among brokerage firms operating in the country’s growing capital market.
The enforcement action followed an investigation into share investor Dipendra Agrawal. A probe report prepared after examining the transactions linked to the investor concluded that the three brokerage firms had failed to properly comply with anti-money laundering requirements.
Based on the recommendations of the investigation report, SEBON proceeded with financial penalties against the three brokerage companies.
The development comes amid increasing regulatory efforts to strengthen transparency, compliance, and investor protection in Nepal’s stock market as authorities seek to improve oversight of brokerage operations and prevent illicit financial activities within the securities trading system.
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