Nepal Nepal

New Documents

The Financial Intelligence Unit of Nepal issued an FAQ regarding the use of the goAML application to help in the receipt and analysis of suspicious activity reports, suspicious transaction reports, and threshold transaction reports from reporting entities.

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.

News

Enforcement Actions

0 Items Found


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