Government Issues 12-Point Directive to Strengthen Casino Regulations in Nepal
The Government of Nepal has issued a comprehensive 12-point directive aimed at enhancing legal oversight and regulation of casinos operating in the country. The move comes as part of broader efforts to ensure compliance with anti-money laundering laws and prevent financial crimes.
The Department of Tourism, under the Ministry of Culture, Tourism, and Civil Aviation, emphasized that all casinos currently in operation are required to strictly adhere to the Anti-Money Laundering Act and its provisions. Casino operators have been directed to fully comply with both the newly issued directives and the existing Directives Related to Preventing Money Laundering and Financing of Terrorist Activities.
The Department also reminded casino operators that trading in foreign currency without prior approval from Nepal Rastra Bank is strictly prohibited. Casinos must regularly submit details of their operations in accordance with Casino Regulations, 2082, and the directives issued by the Department, particularly concerning the prevention of money laundering and financing of terrorism.
Among the key requirements, casinos must maintain an updated customer identification system with biometric details and provide this information to the Department upon request. All activities within casino premises must be recorded via CCTV, and recordings should be securely stored for a minimum of six months.
The directive strictly prohibits the operation of casinos through third-party agreements or outside authorized premises. Furthermore, casino operators are required to deduct profit tax from the winnings of players before disbursing the amount. After tax deduction, details of the certificate of such tax deduction must be promptly sent to the concerned Inland Revenue Office and shared with the Department of Tourism.
In addition, online or internet-based casino betting has been explicitly banned. Operators are mandated to ensure adequate security both inside and outside the casino and associated hotel premises.
The Department has warned that any deficiencies found during monitoring will result in immediate legal action, in line with the Expounding of Immediate Reformative Activities for Nepal's Exit from Grey List, 2082.
This directive marks a significant step toward tightening regulatory oversight of the casino sector in Nepal, aiming to curb financial crimes and ensure responsible operations in the industry.
