Country Reports on Terrorism 2011 - Nepal
|Publisher||United States Department of State|
|Publication Date||31 July 2012|
|Cite as||United States Department of State, Country Reports on Terrorism 2011 - Nepal, 31 July 2012, available at: http://www.refworld.org/docid/501fbcaac.html [accessed 19 April 2015]|
Overview: Nepal has taken several steps to bring its laws into compliance with international standards. However, government corruption, poorly regulated trade, weak financial sector regulation, and a large informal economy made Nepal vulnerable to money laundering and terrorist finance. The most significant challenges were the lack of resources and capacity to enforce laws, and a lack of awareness on processes and reporting requirements. The government did not have the needed expertise and skills in the responsible agencies, particularly in investigation techniques. It also lacked a comprehensive counterterrorism law, further complicating enforcement efforts. Nepal experienced no significant acts of international terrorism in 2011.
2011 Terrorist Incidents:
On September 28, a pressure cooker bomb went off in Siddhanath Furniture Factory located at Chauraha and another bomb was found at an oil store in Chatakpur. The Terai People's Liberation Front, formed in 2004 as a split of the Communist Party of Nepal (Maoist), claimed responsibility for planting these two improvised explosive devices (IEDs).
On November 22, a small, pipe bomb-style IED detonated at the offices of a Christian humanitarian organization, United Mission to Nepal, in Kathmandu. Police found literature for the extremist group Nepal Defense Army (NDA) at the site, but the organization has not claimed responsibility. No one was injured.
On December 26, the Nepal Army bomb squad defused and disposed of two bombs planted at the office of the Udayapur District Development Committee in Gaighat. The Khambuwan Rastriya Mukti Morcha Samyukta, a militant group active in the Eastern districts, claimed responsibility for planting the explosives.
Legislation and Law Enforcement: Nepal improved its security monitoring capabilities at official border crossings along the southern border with India and at Kathmandu's Tribhuvan International Airport. The government also increased the Armed Police Force and Nepal Police presence at several border crossings along the southern border with India. There were no arrests or prosecutions of known terrorists. Nepal participated in the State Department's Antiterrorism Assistance Program.
Countering Terrorist Finance: Nepal is a member of the Asia/Pacific Group (APG) on Money Laundering, a Financial Action Task Force (FATF)-style regional body. The Government of Nepal has taken a number of steps to bring its legislation into compliance with international standards, as outlined in the mutual evaluation by the APG and in the Nepal Action Plan agreed to as part of the FATF's International Cooperation Review Group process. These steps included passing the national strategy on Anti-Money Laundering/Counterterrorist Finance (AML/CTF), amending the AML/CTF law to include enhanced enforcement provisions, and establishing a 25-person AML enforcement department under the Ministry of Finance to investigate AML/CTF charges.
The Government of Nepal implemented UNSCRs 1267/1989, 1988, and 1373 through Directives issued by the Nepal Rastra Bank to the banking and financial sector. The government approved a five-year AML/CTF national strategy to address these deficiencies and was developing new legislation with technical assistance from the International Monetary Fund.
For further information on money laundering and financial crimes, we refer you to the 2011 International Narcotics Control Strategy Report (INCSR), Volume 2, Money Laundering and Financial Crimes: http://www.state.gov/j/inl/rls/nrcrpt/index.htm.