Financial Crime World

CIAA Gains Sweeping Powers to Combat Corruption

The Commission for Investigation of Abuse of Authority (CIAA) has been granted sweeping powers to investigate and prosecute corruption cases, marking a significant step in the country’s efforts to combat corruption.

Expanded Powers

According to sources, the CIAA is now empowered to:

  • Take statements from suspects and other individuals deemed necessary
  • Search and seize assets and property
  • Access bank accounts and financial transactions
  • Restrict travel by suspecting individuals

The CIAA’s expanded powers also include the ability to prosecute corruption cases in the Special Court, which has appellate jurisdiction over corruption cases, with appeals going to the Supreme Court.

Implementing UNCAC

Nepal is implementing the United Nations Convention against Corruption (UNCAC), a comprehensive international anti-corruption treaty signed by the country in 2003 and ratified in 2011. To effectively implement the UNCAC:

  • The Government has formed high-level steering committees and working groups
  • The CIAA is working to prevent corruption through policies such as the three-year strategic plan of the country, anti-corruption strategic and action plan of the government, and institutional working plans

However, despite these efforts, Nepalese law still lacks provisions for criminalizing certain acts of corruption, including:

  • Bribery in the private sector
  • Punishment of legal persons
  • Embezzlement of property in the private sector
  • Bribery of foreign public officials and officials of public international organizations

International Cooperation

The UNCAC emphasizes the importance of international cooperation in combating corruption. However, Nepal currently lacks a proper legal and institutional mechanism for international cooperation, which hinders its ability to effectively combat corruption with other countries.

To address this gap:

  • Nepal needs to establish bilateral and multilateral treaties
  • Enact new laws related to mutual legal assistance, asset recovery, joint investigation, extradition, and execution of verdicts of foreign courts

Conclusion

The decision to grant the CIAA expanded powers is a crucial step in strengthening Nepal’s efforts to combat corruption. However, it is equally important that the country addresses its shortcomings in implementing the UNCAC, particularly with regards to international cooperation and criminalization of certain acts of corruption.