Nepal

New Documents

RUSI Publishes Report on Illicit Financial Flows, Corruption in Asia

The Royal United Services Institute published an occasional paper detailing illicit financial flows and corruption in Asia across eight countries: Kyrgyzstan; Tajikistan; Afghanistan; Pakistan; India; Nepal; Bangladesh; and Myanmar.

December 4, 2017

Transparency International Publishes Corruption Report on Nepal

Transparency International Nepal released the findings of its National Integrity System Assessment for Nepal, which covers 11 pillars related to corruption, including the legislative and executive branches, the public sector, anti-corruption agencies, political parties and media.

May 21, 2014

Transparency International Reports on South Asia’s Efforts to Combat Corruption

May 20, 2014

Nepalese Regulator Provides Guidance for Threshold Transaction Reporting

January 15, 2014

Nepal’s FIU Publishes Annual Report of AML/CTF Activities

May 28, 2013

News

Midweek Roundup: Credit Suisse Under AML Investigation, Malta Fines Satabank, and More

ABLV accused of involvement in murder of Latvian attorney, money laundering case against Latvia’s central bank governor advances, and more, in the midweek roundup.

July 10, 2019

Weekly Roundup: US Senate Endorses Lifting Sanctions Against 3 Russian Firms, Malaysia Wants $7.5 Billion from Goldman Sachs, and More

House Democrats plan strategy for investigating Trump’s alleged financial crimes, Dutch lender to trim executive payouts after paying money-laundering penalty, and more, in this week’s roundup.

January 18, 2019

Weekly Roundup: Malaysia Vows Actions on 1MDB, Nicaragua Restricts Evangelical Groups Linked to Laundering, and More

August 19, 2016

Midweek Roundup: Governments Promise More Action on Panama Leaks, Brazil’s Rousseff Vows to Fight Impeachment, and More

April 13, 2016

Weekly Roundup: Menendez to Face Corruption Charges, Commerzbank AG Penalty Expected Soon, and More

March 6, 2015

Enforcement Actions

0 Items Found

Key Documents

Nepal Amends Its 2008 AML Act

May 2, 2012

Nepali Government Issues AML Rules

November 26, 2009

Nepal Publishes KYC Requirements for Money Changers

December 1, 2009

Nepal Issues AML Regulations for Money Transmitters

December 1, 2009

Nepali Regulator Issues AML Directive for Casinos

December 1, 2009

Important Facts

  • The U.S. State Department lists Nepal as a monitored jurisdiction. Nepal is not a regional financial center, but government corruption, poorly regulated trade, weak financial sector regulation and a large informal economy make the country vulnerable to money laundering and terrorist financing. Nepal is not a significant producer of narcotic drugs, but hashish, heroin and domestically-produced cannabis and opium are trafficked to and through Nepal. In addition, its relatively porous borders are used to conceal drug and human trafficking. Major sources of laundered proceeds include tax evasion, corruption, counterfeit currency, smuggling and invoice manipulation. Nepal's government and banking industry officials also report that there is also an unregulated flow of informal remittances. Officials have identified the use of under- and over-invoicing as a major money laundering challenge. Another issue is the illicit flow of bulk counterfeit currency and gold smuggling. An open border with India and inadequate security screening also make it difficult to detect hard currency flowing in and out of the country.
  • KYC Covered Entities: Banks, securities agents, insurance agents, casinos, money remitters and changers, cooperatives, designated government agencies, lawyers and notaries, auditors, trust and company service providers, and precious metals and stone traders
  • STR Covered Entities: Banks, securities agents, insurance agents, casinos, money remitters and changers, cooperatives, designated government agencies, lawyers and notaries, real estate brokers, auditors, and precious metals and stone traders
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 2 (July 16, 2014 - July 15, 2015); Convictions: 4 (July 16, 2014 - July 15, 2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 1 High :
Largely Compliant : 3 Substantial :
Partially Compliant : 10 Moderate :
Non-Compliant : 33 Low :
Not-Applicable : 2

BASEL i

Rank : 14/146
Score : 7.57/10

TRANSPARENCY INTERNATIONAL i

Rank : 117/179
Score : 33/100

Tax Justice Network i

Rank : N/A
Score : N/A