The Government of Nepal has issued the Money Laundering Prevention (Third Amendment) Ordinance, 2083 (2026) to strengthen the anti-money laundering framework, particularly by expanding the investigative powers of the Department of Money Laundering Investigation.
This ordinance significantly enhances the Department’s jurisdiction over serious financial and economic crimes and streamlines prosecution procedures.
Overview of the Money Laundering Prevention Ordinance 2026
The Ordinance amends the Money Laundering Prevention Act, 2064 (2007) and introduces targeted changes to improve investigation, prosecution, and judicial handling of money laundering cases linked to specific predicate offences.
Key Amendments Introduced by the Ordinance
1. Expanded Authority of the Money Laundering Investigation Department
The Department now has specific and exclusive authority to receive complaints and investigate money laundering offences connected with the following predicate offences:
- Smuggling (including customs, excise duty, and tax-related offences)
- Taxation offences (both direct and indirect taxes)
- Market manipulation adversely affecting securities or commodities market
- Insider trading
- Offences relating to currency, banking, financial matters, foreign exchange, negotiable instruments, and insurance
Any person can now directly file a complaint with the Department regarding money laundering linked to these offences.
2. Designation of Special Government Attorney’s Office
For cases investigated directly by the Department, the Government of Nepal will designate a specific Government Attorney’s Office (likely the Special Government Attorney’s Office) to review the investigation report and take further legal action.
3. Prosecution in the Special Court
Cases investigated by the Department will now be filed before the Special Court instead of the District Court. This change aims to ensure faster and more specialized adjudication of complex money laundering matters.
4. Joint Prosecution of Predicate Offence and Money Laundering
During investigations conducted by the Department, if no separate case has been filed for the predicate offence, the Department can now recommend prosecution for both the predicate offence and the money laundering offence together. This provision strengthens the overall enforcement mechanism.
Practical Implications for Businesses & Individuals
- Heightened scrutiny on tax-related offences, smuggling, foreign exchange violations, and securities market crimes in the context of money laundering.
- Faster and more coordinated investigation and prosecution process.
- Businesses engaged in banking, insurance, securities, import-export, and taxation must maintain robust compliance systems to mitigate risks.
Conclusion
The Money Laundering Prevention (Third Amendment) Ordinance 2083 (2026) reflects Nepal’s commitment to aligning its AML framework with international standards while strengthening domestic enforcement capacity. The expanded role of the Money Laundering Investigation Department is expected to improve detection and prosecution of complex financial crimes.
