Nepal

New Documents

APG Publishes Mutual Evaluation Report on Nepal

The Asia/Pacific Group on Money Laundering published a mutual evaluation report on the anti-money laundering and counterterrorist financing regime of Nepal, highlighting the jurisdiction’s level of compliance with the global standards set by the Financial Action Task Force.

September 11, 2023

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

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

News

Weekly Roundup: Britain Bans Former Barclays CEO, Goldman Sachs Sues Malaysia, and More

Russian oil “shadow trade” emerges, G-7 supports diversion of Russian assets to Ukraine, and more, in the weekly roundup.

October 13, 2023

Midweek Roundup: SBF Pleads Not Guilty, Coinbase Lands Record AML Penalty, and More

Canadian asset-seizure case draws global attention, European money-laundering investigators plan visit to Lebanon, and more, in the midweek roundup.

January 4, 2023

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

July 10, 2019

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

January 18, 2019

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

August 19, 2016

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 | 2013 Methodology

Technical	Effectiveness
Compliant : 5	High : 0
Largely Compliant : 16	Substantial : 0
Partially Compliant : 16	Moderate : 4
Non-Compliant : 3	Low : 7

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