KATHMANDU, July 2: The government is considering to establish a powerful new body to investigate and prosecute financial crimes, including money laundering.
Speaking during a session of the House of Representatives (HoR) on Thursday, Finance Minister Swarnim Wagle stressed the need for a specialized institution to oversee financial crime cases. “We believe that a discussion should be held on setting up an ‘Economic Crimes Authority’, similar to the powerful Commission for the Investigation of Abuse of Authority (CIAA), against overall economic crimes, not just limited to money laundering,” Wagle said.
In recent weeks, the government has intensified crackdown on money laundering and financial offences. Just two weeks ago, Nepal’s largest-ever case of money laundering and financial misappropriation—amounting to more than Rs 115 billion—was filed at the Special Court.
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The case involves 39 individuals and several companies, including controversial businessmen Deepak Bhatta and Sulabh Agrawal. Investigations are also underway into stock broking firms, reinsurance companies, micro-insurance firms, and investment entities suspected of facilitating or benefiting from illicit financial networks.
The government is under mounting pressure to remove Nepal from the Financial Action Task Force (FATF) grey list. Despite recent efforts, the FATF’s review meeting held a few days ago decided to keep Nepal under its “increased monitoring” regime in 2026, citing shortcomings in the effective implementation of laws and regulatory mechanisms to curb illicit financial activities.
Currently, more than 13 investigative bodies, including the Department of Money Laundering (DoML), are tasked with probing financial crimes under the framework of more than 50 separate laws. As per the law, the DoML conducts preliminary investigations upon receiving complaints and forwards cases to relevant agencies for further action.
Although the CIAA also has authority to prosecute money laundering cases, overlapping jurisdictions and fragmented responsibilities have created confusion. Minister Wagle argued that the existing system is too fragmented and intertwined, underscoring the need for a centralized authority. “If we misuse issues like money laundering to fulfill political ends, we cannot get out of the grey list,” he warned.
Wagle further emphasized the urgency of reforms, stating: “We must get out of the grey list because it will break financial ties with the foreign sector, which might take the country to more trouble in coming days.”
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