Corruption and Money Laundering Cases in Nepal: A Review
Nepal has been struggling to combat corruption and money laundering cases despite having a specialized legal mechanism in place. This review aims to analyze the country’s efforts to prevent illegal acquisition of property and launder criminally earned money.
The Asset (Money) Laundering Prevention Act, 2008
The primary legislation aimed at preventing money laundering is the Asset (Money) Laundering Prevention Act, 2008. However, the law has several flaws, including:
- Ambiguity in defining what constitutes money laundering
- Uncertainty about the extent of the crime
Institutional Challenges
Despite having a range of institutions involved in combating corruption and money laundering, their progressive running has been hindered by:
- Lack of resources
- Inadequate capacity and competence
- The department responsible for investigating and prosecuting these cases is not independent and autonomous, making it challenging to ensure effective implementation of the law.
Recent Developments
According to recent reports, complaints received by the department have increased significantly, but the number of cases registered in court remains low. Only a few cases have been decided by special courts, and most of them have been partially or fully settled out of court.
Supreme Court’s Role
The Supreme Court of Nepal has played an important role in shaping the country’s anti-money laundering efforts. However, recent judgments have raised concerns about:
- Lack of clarity in defining money laundering
- Need for identifying the source of illegally acquired funds
Conclusion
Despite progress made over the past 14 years, corruption and money laundering cases continue to plague Nepal. The problem is compounded by the fact that influential individuals and groups are often involved, making it challenging to prevent and prosecute these crimes.
To effectively address these pressing issues, Nepal needs to:
- Strengthen its institutional arrangements
- Increase resources and capacity
- Ensure greater transparency and accountability
By addressing these challenges, Nepal can work towards a more effective and transparent system for combating corruption and money laundering.