Casinos in Nepal are now required to report any transactions exceeding $7,400 within a 24-hour period. This move is part of the country's broader effort to strengthen financial oversight and improve its standing on the global watchlist of jurisdictions considered vulnerable to money laundering.
Nepal has introduced a new rule requiring casinos to report high-value transactions. Under the directive, operators must report any transactions by a single customer totaling NPR1 million (approximately $7,400) within a 24-hour period.
The order was issued by Nepal’s Department of Money Laundering Investigation.
In February, the Financial Action Task Force (FATF) placed Nepal on its “grey list” of jurisdictions considered at higher risk for money laundering. The move was based on insufficient oversight of financial transactions, particularly those involving illegal funds, corruption, and tax evasion.
In response, Nepal has rolled out a series of corrective measures targeting financial institutions and businesses, including casinos. According to Fiscal Nepal, casinos are now required to maintain 24-hour surveillance of all gaming activities and store the footage for at least six months. They must also keep visitor logs for a minimum of five years.
Additionally, casinos must install biometric identification systems at entrances, follow stricter know-your-customer (KYC) procedures, and meet all anti-money laundering (AML) regulations. The minimum paid-up capital requirement for gaming operators has also increased from NPR150 million to NPR200 million (approximately $1.48 million).
Spurred by the FATF grey list
Nepal was first placed on the Financial Action Task Force (FATF) grey list in 2008 and wasn’t removed until 2014. Being listed can raise concerns about a country’s financial stability, hinder foreign investment, and harm its global reputation—especially when grouped with nations like Yemen, Syria, and Nigeria. (Laos was also added to the list in February, while the Philippines was removed.)
The FATF blacklist carries even greater stigma. Currently, it includes only three countries: North Korea, Iran, and Myanmar. In 2023, the Paris-based FATF suspended Russia, citing its invasion of Ukraine as a breach of the organization’s core values.
In response to renewed FATF scrutiny, Nepal has introduced a seven-point action plan aimed at strengthening its fight against money laundering and terrorist financing. According to the Kathmandu Post, the plan includes:
Enhancing awareness of money laundering and terrorist financing risks.
Strengthening risk-based oversight of sectors like banking, casinos, and real estate.
Improving detection of illicit financial activities and expanding financial sanctions.
Providing greater support for investigative agencies.
Increasing prosecution of financial crimes.
Confiscating assets linked to financial offenses using risk-based profiling.
Improving compliance with financial sanctions related to terrorism and biological weapons.
