Nepal-India Pact to Combat Financial Crimes

Nepal's law minister introduced an agreement with India on Mutual Legal Assistance in Criminal Matters. Signed in February 2026, it aims to streamline investigations, prosecute criminals, and curb financial crimes. The agreement plays a crucial role in removing Nepal from the FATF grey list and combating money laundering.

Kathmandu witnessed a significant move on Tuesday as Nepal's law minister presented the Mutual Legal Assistance agreement with India to the House of Representatives. This pact, initially signed on February 17, 2026, in Kathmandu, aims to streamline criminal investigations.

This agreement is expected to effectively prosecute criminals and recover assets acquired through unlawful means. Significantly, it is seen as a pivotal step towards reducing financial crimes, including controlling money laundering and monitoring financial investments in terrorist activities.

Experts emphasize the importance of this pact in aiding Nepal's removal from the Financial Action Task Force (FATF) grey list, marking a vital development in combating financial misconduct.