The government is considering establishing a powerful Economic Crimes Authority to investigate and prosecute financial crimes, including money laundering, as Nepal intensifies efforts to strengthen its anti-financial crime framework and exit the Financial Action Task Force (FATF) grey list.
Speaking in the House of Representatives on Thursday, Finance Minister Swarnim Wagle said Nepal needs a specialized institution, similar to the Commission for the Investigation of Abuse of Authority (CIAA), to deal comprehensively with economic crimes.
“We believe there should be a serious discussion on establishing an Economic Crimes Authority, similar to the CIAA, to investigate and prosecute overall economic crimes, not just money laundering,” Wagle said.
The proposal comes amid the government’s intensified crackdown on financial crimes. Just two weeks ago, authorities filed Nepal’s largest-ever money laundering and financial misappropriation case at the Special Court, involving alleged transactions exceeding Rs 115 billion.
The case names 39 individuals and several companies, including controversial businessmen Deepak Bhatta and Sulabh Agrawal. Investigations are also underway into stock brokerage firms, reinsurance companies, micro-insurance companies and investment entities suspected of facilitating or benefiting from illicit financial networks.
The government has come under increasing international pressure to strengthen its anti-money laundering regime after the Financial Action Task Force (FATF) decided to keep Nepal on its grey list under the “increased monitoring” framework in 2026. The FATF cited shortcomings in the effective implementation of laws, enforcement mechanisms and institutional capacity to combat money laundering and terrorist financing.
At present, financial crimes in Nepal are investigated by more than 13 different agencies, including the Department of Money Laundering Investigation (DoMLI), under provisions contained in more than 50 separate laws. Under the existing system, the DoMLI conducts preliminary investigations before forwarding cases to relevant agencies for further action.
Although the CIAA also has jurisdiction over certain money laundering offences linked to corruption, overlapping mandates among multiple institutions have often led to fragmented investigations and administrative complexity.
Minister Wagle argued that the current institutional structure is too dispersed to effectively tackle sophisticated financial crimes, stressing the need for a centralized authority with broader investigative and prosecutorial powers.
“If issues such as money laundering are used to serve political interests, Nepal will not be able to come out of the FATF grey list,” he cautioned.
Emphasizing the urgency of reform, Wagle said Nepal must strengthen its financial crime enforcement system to restore international confidence.
“We must come out of the grey list because prolonged inclusion could weaken Nepal’s financial relations with the international community and create greater economic challenges in the future,” he said.
The proposed Economic Crimes Authority, if established, is expected to consolidate financial crime investigations under a single institution, improve inter-agency coordination and strengthen Nepal’s compliance with international anti-money laundering and counter-terrorist financing standards.
