Key Moments:
- Nepal’s government has implemented a new 12-point directive to strengthen casino oversight and enforce stricter compliance with the Anti-Money Laundering Act.
- Online or internet-based casino gaming is now completely banned under the updated regulatory framework.
- Casinos must now maintain detailed customer records, deploy biometric identification, and deduct profit taxes before issuing winnings to players.
Significant Regulatory Changes for Nepalese Casinos
The Department of Tourism, under Nepal’s Ministry of Culture, Tourism and Civil Aviation, introduced an extensive 12-point directive. In addition, the new rules aim to tighten casino regulation. This new framework requires all gaming venues to comply fully with the Anti-Money Laundering (AML) Act. It also adds stronger requirements for counter-terrorist financing (CFT). Casino operators must now submit ongoing AML and CFT documentation to the controlling authority. As a result, compliance reporting becomes more structured and disciplined.
Additionally, the new rules bar casinos from managing foreign currency transactions unless express approval has been granted by Nepal Rastra Bank. This serves to reinforce previously established advisories against unauthorized currency dealings. The regulatory revamp is being introduced as online gambling continues to expand rapidly within the country.
Enhanced Customer Verification and Surveillance
Casino operators are now directed to follow the stricter Casino Regulations, 2082, established earlier this year. These regulations mandate rigorous adherence to Know Your Customer (KYC) standards, including the rollout of biometric identification for all patrons. Operators must collect, update, and preserve identity and biometric data for all customers. In addition, they must provide this information to authorities upon request.
To further combat illicit activity, casinos must ensure full CCTV monitoring of all gaming areas at all times, with requirements for secure storage of video footage for at least six months. This is intended to support prompt and thorough investigations or audits.
Comprehensive Oversight and Profit Tax Deductions
The directive also closes previous loopholes by prohibiting the operation of casinos through indirect means or unauthorized venues. Another crucial measure enforces the deduction of a “profit tax” from player winnings before any payouts, with operators responsible for providing winners with deduction certificates and forwarding documentation to both the Inland Revenue Office and Tourism Department.
Full Ban on Online Gambling and Heightened Security
Perhaps most notably, the directive has outlawed all online and internet-based gambling offerings, citing concerns about risks, unregulated cross-border cash flows, and the threat of money laundering. Physical security for casino premises and their connected hotel properties must now be reinforced, as mandated by regulators.
Alignment with International Standards and Enforcement
Authorities have linked these reforms to Nepal’s ambition to exit the Financial Action Task Force (FATF) Grey List. The new rules support what are described as “risk-based” inspections, with the potential for immediate legal action should any lapses or violations occur during active monitoring. Meanwhile, Nepal Rastra Bank (NRB) has introduced additional requirements obliging Payment Service Providers (PSPs) to block the accounts of individuals or organizations facing UN or domestic terrorist-related sanctions, extending to related assets in accordance with FATF guidance.
Broader AML/CFT Strategy Underway
Beyond the gambling industry, Nepal Rastra Bank has stated its intent to intensify scrutiny and enforcement of the country’s AML and CFT frameworks. Emphasis is being placed on improved monitoring, investigation, and prosecution, alongside legal upgrades coordinated with the International Monetary Fund (IMF). The expanded focus includes non-financial sectors such as real estate, precious metals, and gambling venues.
Observers have noted that by implementing these far-reaching changes, Nepal is signaling its commitment to strengthening its financial ecosystem, tightening enforcement within the gaming industry, and mitigating reputational risks associated with past regulatory gaps. While Nepal is no longer on the FATF’s grey list, the sweeping update aims to create a more transparent and internationally credible gambling environment within the nation.
| Directive Requirement | Details |
|---|---|
| AML & CFT Compliance | Regular submission of AML and CFT documentation to Tourism Department |
| Foreign Currency Handling | Prohibited without Nepal Rastra Bank approval |
| KYC & Biometric ID | Mandatory collection and update of bettor identity and biometrics |
| CCTV Surveillance | Continuous coverage; footage stored for a minimum of six months |
| Profit Tax Deduction | Mandatory deduction before payout, with documentation to be filed with authorities |
| Online Gambling | Total prohibition enacted |
- Author
Daniel Williams
