Nepal Money Laundering Probe 2026

A delegation from the Asia Pacific Group arrived in Kathmandu to assess Nepal's progress in combating money laundering and terrorist financing as part of efforts to exit the Financial Action Task Force grey list, meeting with key government officials to discuss ongoing reforms.

CPN (UML) MP Ram Kumari Jhakri accused the government of intimidating the private sector by arresting the bank CEO without cause, denouncing the action as illegal and contrary to banking law on rescheduled assets and liquidation processes.

MP Abhishek Pratap Shah called for an impartial and high-level investigation into former Home Minister Sudhan Gurung's declared assets, questioning the fairness of the current government-formed probe committee.

Nepal’s Auditor General highlighted Rs755.17 billion in public spending arrears with Rs88.09 billion new irregularities, recommending expansion of digital payment systems and procurement reforms to improve fiscal discipline and reduce financial irregularities in government agencies.

Nepal's cumulative financial irregularities reached Rs755.17 billion, with Rs88.09 billion added in fiscal year 2024–25, following audits of 5,526 government offices covering expenditures of Rs9.48 trillion.

The Auditor General reported weak financial governance in Nepal's local governments, including unplanned budget reserves exceeding Rs 7 billion and discrepancies over Rs 54 crore between bank balances and ledger accounts. Many local levels failed to comply with financial laws and regulations.

The Supreme Court granted Nepal Investment Mega Bank CEO Jyoti Prakash Pandey release on personal recognisance and barred his foreign travel pending ongoing investigations into the fraudulent auction of Smart Telecom assets.

Audits identified NPR 19.04 billion in new financial irregularities across Nepal's local levels in fiscal year 2081/82, raising total local government irregularities to NPR 22.04 billion. Issues include suspected embezzlement and unreconciled advances amid weak financial discipline.

Four banking and financial sector associations jointly urged authorities not to detain CEO Jyoti Prakash Pandey during the loan recovery investigation, citing legal protections and warning of damage to public confidence and institutional stability.

Four major banking and financial sector associations in Nepal called for a fair investigation into the detention of Nepal Investment Mega Bank CEO Jyoti Prakash Pandey. They emphasized adherence to banking law related to loan recovery and warned that the detention risks undermining public confidence and sector stability.

Nepal Investment Mega Bank CEO Jyoti Prakash Pandey’s arrest raised strong concerns among banking associations about impacts on loan recovery and business confidence, prompting sector meetings including the Federation of Nepalese Chambers of Commerce and Industry.

The controversy over the Giribandhu Tea Estate in Jhapa involves allegations of political corruption relating to a 2021 land swap approved by a previous government and annulled by the Supreme Court in 2024, which ordered the government to reclaim excess land.

The arrest of Nepal Investment Mega Bank CEO Jyoti Prakash Pandey over a collateral auction linked to Smart Telecom has raised concerns about conflicts between banking regulations and telecommunications laws among bankers and legal experts.

Nepal's Supreme Court reserved its verdict on a writ petition alleging that former Prime Ministers Prachanda and Baburam Bhattarai committed war crimes related to recruitment of child soldiers during the Maoist conflict, with calls for investigation and prosecution under international law.

Nepal Insurance Authority suspended Himalayan Reinsurance Limited from engaging in new reinsurance business until mid-July 2026 due to financial irregularities uncovered in investigations.

Jyotiprakash Pandey, CEO of Nepal Investment Mega Bank, was arrested by police in Sarlahi on charges of fraud and criminal breach of trust related to mismanagement and auction of Smart Telecom Pvt. Ltd. assets after license cancellation, involving 400 million rupees.

Jyoti Prakash Pandey, CEO of Nepal Investment Mega Bank, was arrested by Nepal Police on charges of fraud and criminal breach of trust related to a fraudulent auction of government telecom assets involving Smart Telecom Pvt Ltd.

Former Civil Aviation Authority of Nepal Director General Pradip Adhikari and two others were charged with extortion, organized crime, and threatening the Chief Commissioner of the Commission for Investigation of Abuse of Authority. Charges also include criminal conspiracy, Hundi business violations, and electronic transaction offenses, with one defendant evading arrest abroad.

Following license revocation due to arrears, Smart Cell's mortgaged assets are under government control, sparking disputes with banks over asset ownership and collateral auction rights.

The Ministry of Youth and Sports prepared to take strict action, including possible suspension, against the Cricket Association of Nepal for refusing to cooperate with investigations by withholding accounting and record documents.

Nepal provided additional evidence and legal documents to Interpol in efforts to secure a Red Notice against former PM Sher Bahadur Deuba and his wife linked to money laundering. Interpol requested further clarifications including court orders before considering the notice.

Rabindra Regmi criticized Nepal's criminal justice system for detaining suspects prior to evidence collection, publicizing accused individuals prematurely causing stigma, and lacking compensation mechanisms for wrongful arrests compared to developed countries.

Several individuals, including Biranjan Yadav and Madannarayan Shrestha, were wrongfully imprisoned for years in Nepal before Supreme Court acquittals, highlighting judicial errors, lack of compensation laws, and ongoing social stigma faced by the wrongfully accused.

Nepal's anti-corruption agency filed a case against former finance minister Gyanendra Bahadur Karki and 13 others for Rs 3.62 billion in illegal tax waivers during Pokhara International Airport construction, implicating senior officials and Chinese contractors.

The Pokhara International Airport project faces corruption allegations involving inflated construction costs and illegal tax exemptions granted to China CAMC Engineering, with financial damages exceeding Rs 12 billion, marking Nepal's largest corruption case.

The Special Court extended the remand of businessmen Deepak Bhatta and Sulav Agrawal by 12 days amid investigation into money laundering, financial irregularities involving Shankar Group companies, and potential public procurement collusion.

Nepal Police initiated the process to issue an Interpol Red Corner Notice against former Nepali Congress President Sher Bahadur Deuba for money laundering while he is in Hong Kong. Necessary documents were sent to Interpol headquarters though no official response has been received yet.

Supreme Court holds hearings for habeas corpus petitions of detained former FNCCI Chairman Shekhar Golchha and businessman Deepak Bhatta in connection with money laundering investigations, with court orders for custody reviews.

The government broadened the asset probe commission's mandate to include offshore assets of senior officials since 2006-07, facing challenges in tracing and recovering illicit wealth due to legal and diplomatic complexities and fugitives evading justice abroad.

Nepal formed a commission led by former Supreme Court Justice Rajendra Kumar Bhandari to investigate assets of public officials including prime ministers and ministers since 2006, domestically and abroad. This commission collaborates with international agencies like Interpol to examine potentially illicit wealth and recommends further legal actions.

The Property Investigation Commission began scrutinizing assets of Deputy Superintendent of Police and above in Nepal's police, armed police, and National Investigation Department, excluding military officers and judges. The investigation covers officials from fiscal years 2058 to 2083 with a one-year deadline to complete.

The Department of Anti-Money Laundering initiated investigations into eight insurance companies, including Himalayan Reinsurance Limited and seven micro-insurance firms, for suspected financial irregularities related to share payments beyond official paid-up capital.

Ashish Shrestha, Chairperson of Nepal Micro Insurance, was arrested by Nepal Police's Central Investigation Bureau following a recommendation by the Nepal Insurance Authority concerning alleged offenses under the Insurance Act of 2079.

The Supreme Court scheduled a hearing for the corruption case over Bhrikutimandap land lease involving former minister Badri Nyaupane and others, where the CIAA seeks Rs 315.2 million compensation and penalties for procedural violations.

Madan Kumar Gupta, convicted in multiple corruption cases involving embezzlement and fake receipts worth 190 million rupees, faces a Supreme Court hearing in Kathmandu on appeals of his sentences and fines.

Nepal's Public Procurement Monitoring Office blacklisted seven construction firms, including one Italian company, prohibiting them from government contracting for up to two years based on recommendations from Nepal Electricity Authority.

Nepal police conducted a nationwide anti-drug operation arresting 41 individuals across multiple districts including Kathmandu and Jhapa, seizing substances such as heroin, tramadol, and nitrazepam tablets along with cash and drug scales.

The Special Court criticized the Commission for the Investigation of Abuse of Authority for its wholesale prosecution approach in corruption cases, leading to acquittals due to lack of evidence and highlighting judicial concerns over selective prosecutions.

Nepal recalled Consul General Bindeswar Prasad Lekhak in Hong Kong for supporting former PM Sher Bahadur Deuba and his wife, who are fugitives living in Hong Kong facing corruption arrest warrants.

Nepal Police arrested contractors Bikram Pandey and Tank Kumar Shrestha for unauthorized access and manipulation of tender details in the government's e-Government Procurement system to alter economic proposals before bid openings.

A corruption complaint was filed with Nepal's Commission for the Investigation of Abuse of Authority alleging that Nepal Oil Corporation caused losses of millions by favoring traders and doubling daily oil distribution before an official price hike on 28 Falgun 2082 BS.

The Special Court in Kathmandu prepared to hear corruption charges against former Security Printing Center Executive Director Bikal Paudel for illegal wealth accumulation and overseas asset concealment, with Rs 621 million involved and partial recovery of assets.

The five-member property probe commission chaired by former Supreme Court Justice Rajendra Kumar Bhandari officially started investigating assets of political and bureaucratic elites over the last two decades, with a one-year mandate to report to the government.

An audio leak implicated Madhesh Province Deputy Inspector General Govinda Thapaliya's informants in extorting businessmen; multiple senior police officials were recalled and investigations initiated for misconduct.

Nepal's Property Investigation Commission, chaired by Rajendra Kumar Bhandari, officially started examining assets of public officials and their families dating back over two decades to identify illegal acquisitions.

The government filed a review petition against the Supreme Court ruling on the Unity Life International fraud case, contesting a clause that could return unclaimed swindled funds to perpetrators and citing precedents to protect investor assets.

Home Minister Sudan Gurung is scrutinized for asset disclosures exceeding legal land ownership limits and share investments connected to accused money launderers; political accountability concerns persist.

A writ petition was filed in the Supreme Court seeking suspension of RSP Chairman Rabi Lamichhane from parliament due to pending money laundering and organized crime charges, citing legal provisions mandating such suspension.

The GenZ Movement Nepal demanded Home Minister Sudhan Gurung's immediate resignation to ensure an impartial corruption investigation, citing conflicts of interest and undisclosed assets linked to businessman Deepak Bhatta.

Home Minister Sudan Gurung faces criticism within his Rastriya Swatantra Party and calls for a fair investigation over undisclosed investments linked to businessman Deepak Bhatta.

Home Minister Sudan Gurung pledges full cooperation with investigations into alleged business links with Deepak Bhatta and denies concealment of investments totaling over Rs 20 million.

Home Minister Sudhan Gurung is linked to undisclosed shares in Star Micro Insurance, connected to businessman Deepak Bhatt, raising transparency concerns during ongoing money laundering investigations.

The Commission for the Investigation of Abuse of Authority filed 798 corruption cases involving 4,662 defendants over five years, with claims totaling over 31 billion rupees; around 55% resulted in established guilt by the Special Court.

The Supreme Court deemed former minister Deepak Khadka's arrest and remand illegal and ordered his immediate release with travel restrictions amid ongoing probes into corruption, tax evasion, and financial irregularities.

The Supreme Court set a hearing for the habeas corpus petition filed by former minister Deepak Khadka, arrested in ongoing money laundering investigations, addressing claims of illegal detention.

A special court scheduled a hearing for corruption charges against former Health Services Director General Dr. Sangita Kaushal Mishra involving inflated procurement costs of mammography machines, causing over Rs 140 million in state losses.

Nepal's Supreme Court directed the Department of Revenue Investigation to submit files related to Nepali Congress leader Dipak Khadka, arrested on money laundering charges, to the court by midday Thursday.

The government established a five-member commission led by former Supreme Court Justice Rajendra Kumar Bhandari to investigate assets of politicians and high officials since 2006, aiming to uncover hidden wealth and corruption.

Raids were conducted on the offices of businessmen Deepak Bhatta and Sulav Agrawal, including Himalayan Re-Insurance, with documents seized; both are in custody facing money laundering charges.

The Department of Money Laundering Investigation raided residences and offices of Sulav Agrawal and Deepak Bhatta, seizing documents amid probes into suspicious financial activities involving the Shanker Group and public contract manipulation.

Former minister Deepak Khadka faces investigations for corruption, tax evasion, and money laundering, with ongoing custody granted by Lalitpur District Court and cases referred to multiple agencies.

The Department of Money Laundering Investigation transferred former Minister Deepak Khadka's money laundering case to the Commission for the Investigation of Abuse of Authority following legal amendments requiring predicate offenses.

The Department of Money Laundering Investigation requested a Kathmandu District Court to issue an arrest warrant for former Prime Minister Sher Bahadur Deuba and his wife Arzu Rana in relation to money laundering investigations.

Nepal's Department of Money Laundering Investigation initiated the process to issue an Interpol notice against former PM Sher Bahadur Deuba and his wife Arzu Rana Deuba, currently abroad, for illegal asset accumulation.

The Commission for the Investigation of Abuse of Authority filed money laundering charges against Gandaki Province accounts officer Jhalak Sharma Paudel for illicit asset accumulation exceeding Rs 25 million.

Central Investigation Bureau arrested Jagdamba Group chairperson Shankar Agrawal on money laundering charges linked to suspicious financial transactions involving businessman Deepak Bhatt.

Nepal Police arrested businessman Deepak Bhatta, chairman of Infinity Holdings, in connection with a money laundering investigation involving suspicious Rs 450 million transactions and irregular public procurement related to hydropower licenses.