Weak law enforcement puts Nepal’s anti-money laundering efforts at ‘medium-high’ risk: DoMLI
Summary
Nepal’s vulnerability to money laundering has been assessed at a medium-high level, with weak law enforcement and institutional coordination undermining progress despite stronger legal provisions. The national risk assessment also flags banking, cooperatives, real estate, and virtual assets as key channels for illicit financial activity.
Key Points
- Nepal’s money laundering risk has been rated medium-high, driven by weak enforcement rather than a lack of laws.
- The report says terrorist financing is medium-low risk and proliferation financing is low risk.
- Banking, cooperatives, real estate, remittances, hundi, casinos and fintech are among the sectors most exposed to illicit finance.
- Virtual assets and related service providers are assessed as high risk despite trading in such assets being prohibited in Nepal.
