India and Nepal have recently signed an updated Agreement on Mutual Legal Assistance in Criminal Matters in Kathmandu. This agreement allows the competent authorities of both countries to collaborate in criminal investigations and legal proceedings. The agreement, which stemmed from discussions initiated at a home secretary-level meeting in New Delhi last July, aims to address financial and non-financial crimes, including terrorism.
Binod Kumar Bhattarai, the Joint Secretary at Nepal’s Ministry of Law, Justice and Parliamentary Affairs, and Indian Ambassador to Nepal Naveen Srivastava signed the document on behalf of their governments. The signing took place in the presence of Law Minister Anil Kumar Sinha and other senior officials from various ministries, as stated by the law ministry. The agreement establishes a formal legal framework for cooperation between the competent authorities of both countries, particularly in evidence collection and exchange during criminal investigations and legal proceedings.
The ministry highlighted that this agreement is crucial for enhancing institutional coordination in the administration of justice and strengthening the rule of law. By implementing this agreement, cooperation between the central authorities of India and Nepal is expected to become more robust and result-oriented. The ministry emphasized that the agreement will play a significant role in reducing financial crimes in Nepal and improving the effectiveness of investigation, prosecution, and adjudication processes.
According to officials, this agreement will also support mutual evaluations concerning the prevention of money laundering and the financing of terrorist activities. Nepal anticipates that this agreement with India will aid in its removal from the grey list of the Financial Action Task Force (FATF), a global anti-money laundering body. Nepal was placed back on the FATF grey list in February last year after being removed from it in 2014.
Nepal has been actively introducing regulations to prevent terrorists from accessing financial resources. In a similar move, Nepal had signed a mutual legal assistance agreement with China in 2019 during President Xi Jinping’s visit to the country. The agreement will come into effect once both parties notify each other through diplomatic channels. Nepali officials have outlined plans to establish a formal mechanism to facilitate cooperation in criminal investigations, prosecutions, and judicial proceedings.
However, the signing of an extradition treaty between India and Nepal is still pending, with a key point of contention being the extradition of third-country nationals.
