Nepal tightens casino oversight with 12-point compliance directive
The move is intended to strengthen AML/CFT controls.
Nepal.- A new 12-point directive is aimed at strengthening oversight of Nepal’s casino industry. Issued by the Department of Tourism under the Ministry of Culture, Tourism and Civil Aviation, the directive is designed to bring operators into compliance with the Casino Regulations 2082.
Under the directive, casinos must regularly submit detailed AML/CFT documentation to the Tourism Department to show adherence to the Money Laundering Prevention Act, the Tourism Act and all casino-specific rules. The government has again warned that foreign currency transactions are forbidden without explicit authorisation from Nepal Rastra Bank.
Under new Know Your Customer (KYC) requirements, operators are now obligated to maintain updated customer identification systems, including biometric data, and provide this information to regulators upon request. Surveillance obligations have also been expanded: casinos must ensure continuous CCTV coverage of all gaming areas, with recordings stored securely for at least six months.
The government has moved to eliminate operational loopholes, prohibiting casinos from running via third-party agreements or in locations other than those licensed. Payout procedures have also been redefined. Operators must withhold and certify the legally required profit tax before releasing winnings to players. Those certificates must be submitted both to the Inland Revenue Office and the Tourism Department without delay.
The directive also reinforces a ban on online casino games, citing heightened risks related to cross-border transactions and money laundering.
