Posted by: kalidasbhaisaab April 21, 2016
How to bring Money from Nepal? ($30K))
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@saiko: It looks like the only way that is reasonably easier, if not impossible, is to receive US Dollars here in US through help of middlemen or friends and relatives who are sending money to Nepal in NPR. Like everyone suggested before me, make an arrangement to pay NPR to someone who is needing to receive NPR in Nepal and request USD be transferred to your account here in US. This is cumbersome process and may even be risky, to some degree, because of the sequencing of transactions and trust issues. I am not that familiar about Hundi process but it may also be considered another risky alternative to bring in Nepali Rupees from Nepal to US. Please be very much aware, actually please be cautioned, that Hundi is illegal. The first approach of transferring small amounts of money from one person to another here in US, for no apparent transactional reason because the actual service or monetary transaction has occurred in Nepal, may also be deemed illegal but I am not sure how those are interpreted. Since this is a one time thing and the amount is not huge (approx $30K), you may be able to take the risk of remitting NPR to USD through smaller transactions, using Nepali community. Be aware that KYC and Compliance data analytics by FinTech companies' data marts do have the ability to observe money movements in your account but I don't think Department of Treasury will sweat over your triggered data set of USD 30K. Bottom line: Options that are available: 1) Do it through friends, family and Nepali diaspora 2) Do it through Hundi Resources: Department of Treasury on Money Laundering Information: https://www.treasury.gov/resource-center/terrorist-illicit-finance/Pages/Money-Laundering.aspx End of Story -------------------------------------------X------------------------------------------------------------------------------------ Another reason to post this was to seek your viewpoint on why Nepal restricts outward remittances. In plain view, there seems to be multiple reasons, and be aware that Forex outward remittance is not a banned process, it's just that there are plenty of restrictions. Stabilizing and controlling USD reserves, surely sounds as one of the pertinent reasons, Anti Money Laundering another big reason, may be. Nothing against bulk of regulations restricting Forex movements, I think they are essential. But going through Nepal Rastra Bank's Foreign Exchange Management Rules publications, it looks like eventually they will have to update some of these rules. For example there is a Circular (rule) (LINK) to allow outward remittance of Forex funds, albeit within huge restrictions. On the other hand, through section 5 (Restriction on export or import of certain currency and bullion) of Foreign Exchange (Regulation) Act, 2019 (1962) (LINK) Central Bank of Nepal has power to completely restrict outward Forex remittance. Circular 617, although looks like it was recently updated, does not materially change the allowable foreign exchange conversion limit of USD 3000. That amount seems like hasn't changed since I worked in a Bank around 2005. Nepal's government should foresee better and at least increase that limit to USD 10000. What do you think? India seemed to have similar closed policies until recently (past 10 -15 years) where it began to ease some of the restrictions on outward money movement, especially for Non Resident Indians (LINK). While I am writing this, I lost track of why I am posting all these details. Probably, I am learning. There are not big changes. There are only smaller incremental policy changes that may have long lasting impacts. In this case, I am not sure how to research and quantify the results.
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