Nepal’s Money Laundering Cases: Corruption Runs Deep
Kathmandu, Nepal - The fight against money laundering in Nepal has been marred by corruption, lack of effective implementation of laws, and insufficient coordination among institutions.
A Legal Framework but No Effective Implementation
The country has a legal framework in place to combat money laundering, including the Asset (Money) Laundering Prevention Act, 2008, and the Muluki Criminal Procedure Code. However, the law has not been implemented effectively, with many cases pending in courts for years.
Widespread Corruption and Lack of Coordination
According to a recent report by the Department of Money Laundering Investigation, the department received 1,588 complaints related to money laundering between FY 2070/71 and FY 2074/75. Of these:
- Only 208 cases were registered in court
- 489 cases were sent to other bodies for investigation
The report also highlights the problem of corruption within institutions involved in the sector, with many officials allegedly taking bribes to turn a blind eye to illegal activities.
A Recent Court Ruling Offers Hope
In a recent case, the Supreme Court of Nepal ruled that the source of money must be identified before it can be seized as evidence. The court’s decision has been hailed as a major blow against money laundering, but experts say that more needs to be done to effectively implement anti-money laundering laws.
A Call for Action
“The problem is not just with the law itself, but also with its implementation and coordination among institutions,” said a senior official from the Department of Money Laundering Investigation. “Corruption runs deep in this sector, and it’s difficult to break the cycle.”
The country’s financial information unit (FIU) has also been criticized for being ineffective in collecting and analyzing data on money laundering.
A Critical Situation
Nepal’s struggle against money laundering is not new. The crime has been a major concern for years, with many influential people and groups allegedly involved in illegal activities.
“The situation is critical,” said an anti-corruption activist. “The state must take immediate action to strengthen the legal framework and ensure its effective implementation. Corruption must be rooted out of this sector if we want to succeed.”
The Economic and Global Reputation Implications
In recent years, Nepal has seen a surge in cases related to money laundering, with many high-profile individuals and groups allegedly involved in illegal activities.
The situation is not only damaging for the economy but also for the country’s reputation globally.
“It’s high time that the state takes concrete action against money laundering,” said an economist. “Nepal can’t afford to be seen as a haven for corrupt activity.”