ICAN and Cooperative Regulatory Authority Join Forces to Strengthen Nepal’s Cooperative Sector

The Institute of Chartered Accountants of Nepal (ICAN) and the National Cooperative Regulatory Authority have entered a strategic partnership aimed at enhancing regulation, supervision, and prudential audits in Nepal’s cooperative sector. With over 20,000 savings and credit cooperatives forming a cornerstone of grassroots financial inclusion, the sector has long faced challenges such as weak oversight, governance lapses, and financial mismanagement, raising concerns over members’ savings.

Through an interaction program in Kathmandu, both organizations discussed operationalizing regulatory audits, preparing a joint roster of professional auditors, and improving monitoring, technical support, and capacity-building. Leadership from both sides emphasized the importance of safeguarding deposits, implementing Nepal Financial Reporting Standards (NFRS), and revising the Cooperative Act 2074 to strengthen supervision.

Key outcomes include plans to formalize the partnership via a Memorandum of Understanding, establish a joint steering mechanism for coordination, and focus on training auditors and cooperative personnel. This collaboration is expected to bring rigorous, transparent oversight, reduce financial risks, enhance governance standards, and boost public trust. By combining professional expertise with regulatory authority, this alliance aims to create a resilient and sustainable cooperative ecosystem in Nepal, ensuring the sector continues to support economic development effectively.