The Nepalese government has recently strengthened the regulation of casino capital flows, requiring all casinos to report any single customer transaction amount reaching or exceeding 1 million Nepalese Rupees (about $7,400) within 24 hours. This move aims to enhance financial transparency and help Nepal be removed from the international money laundering risk "grey list".
This new regulation was issued by Nepal's Money Laundering Investigation Department, setting higher compliance standards for casino operators. Casinos must implement 24-hour monitoring of all gaming processes, and video materials must be preserved for at least six months, while visitor identity information must be kept for no less than five years. Additionally, casinos must install biometric systems at entrances, strengthen the "Know Your Customer" (KYC) process, and fully implement Anti-Money Laundering (AML) regulations.
Meanwhile, the minimum paid-up capital standard for casinos has been raised from the previous 150 million Nepalese Rupees to 200 million (about $1.48 million), to enhance the industry's capital strength.
In February 2025, the Financial Action Task Force (FATF) placed Nepal on the grey list of jurisdictions with high money laundering risks, citing serious deficiencies in financial transaction supervision, corruption, and tax evasion prevention. Since first being listed by the FATF in 2008, Nepal was successfully removed in 2014, but has been relisted, affecting international investor confidence and national reputation.
To address these pressures, the Nepalese government has developed seven major measures including raising awareness of money laundering risks, strengthening the supervision of banks and the gambling industry, intensifying the crackdown on illegal financial activities, improving legal enforcement and confiscation of illegal funds. According to The Kathmandu Post, Nepal also plans to enhance targeted sanctions technology compliance against terrorism financing and biological weapons funding flows.
Against the backdrop of being on the grey list with countries like Yemen, Syria, and Nigeria, Nepal is accelerating its efforts to improve financial governance, aiming to reshape its international image and promote the healthy and sustainable development of the gambling industry.
