Nepal Rastra Bank Governor Maha Prasad Adhikari said last month that an assessment by the Asia/Pacific Group on Money Laundering (APG) had put Nepal at risk of being placed on the grey list of the Financial Action Task Force (FATF), the global money-laundering watchdog.
The final decision will be made during the FATF plenary 17-21 February in Paris. The country was previously greylisted from 2009-2014.
The watchdog had advised legal, policy and <a href="https://nepalitimes.com/news/near-debt-experience">structural reforms for Nepal</a> to implement within a year. And while some laws were amended, implementation is another story.&nbsp;
“Nepal’s FATF rating has deteriorated due to the inaction against major cases of <a href="https://nepalitimes.com/editorial/nepal-s-corruption-carousel">corruption</a>, tax evasion, and abuse of financial institutions,” explains Rup Narayan Bhattarai, former Director General of the Department of Money Laundering Investigation.&nbsp;
Sticking to the tradition of blame game, <a href="https://nepalitimes.com/news/nepal-government-changes-again">Prime Minister KP Oli</a>, has blamed the delay in legal reforms on the previous Pushpa Kamal Dahal government.
The APG— of which Nepal has been a member since 2002— is an associate member of the FATF. The organisation had already placed Nepal on the observation list for failing to amend and implement necessary laws to prevent <a href="https://nepalitimes.com/news/nepal-figures-in-leaked-money-laundering-report">money laundering</a> after an evaluation last year.&nbsp;
The assessment looked into Nepal's efforts to combat money laundering in two parts: the first one being technical compliance— the legal and structural reforms to prevent money laundering— and the second being the effectiveness of their implementation.
Nepal has achieved relatively satisfactory results with technical compliance— the assessment found that the country had abided by at least 21 of the 40 criteria laid out by the FATF. Since the evaluation, Nepal has amended and enacted additional laws to meet an additional 10 criteria.&nbsp;
However, the evaluation found the country’s progress in effectively implementing laws to prevent money laundering to be very weak, with Nepal only ‘moderately compliant’ with four out of the 11 standards.
Bhattarai points to the lack of transparency and commitment to preventing money laundering. “It is not enough to just make laws and regulations, they must be implemented and produce noticeable results,” he says. “But we have failed to see such results, due to which our country’s international standing has deteriorated.”
Cooperatives and real estate transactions have also long been used to conceal and legitimise ill gotten wealth. Cooperatives are reluctant to provide details of suspicious financial transactions.
Read also: <a href="https://nepalitimes.com/here-now/cooperatives-leave-nepalis-high-and-dry">Cooperatives leave Nepalis high and dry</a>, Ramesh Kumar
“International authorities have taken issue with the absence of a strong legal and structural system to prevent money laundering in cooperatives and real estate,” says a government insider. “They are well aware of the absence of political will to monitor these sectors.”
In 2023, while banks and financial institutions reported details of 6,255 suspicious transactions to the Financial Intelligence Unit, cooperatives reported only two.
Following an objection by the APG last year regarding large amounts of black money circulating in cooperatives, legislators introduced a proposal to amend the Cooperatives Act to set an individual deposit limit of Rs2.5 million in cooperatives.
But the proposal was rejected after pressure from lobbyists as well as parliamentarians connected to the cooperatives sector.&nbsp;
In December, the government issued an ordinance to amend cooperative-related laws which included a provision allowing depositors to save up to Rs5 million in cooperatives depending on the scope of the institution.&nbsp;
Meanwhile, real estate agents in Nepal do not require a licence, and the government’s flexibility to accommodate <a href="https://nepalitimes.com/news/the-business-of-politics-in-nepal">wealthy businessmen</a> has meant there are no institutions to keep track of land and property dealings and investigate the suspicious financial activity.&nbsp;
“There is no monitoring to see who is buying and selling real estate at what price, and there is no legal framework to prevent money laundering in<a href="https://nepalitimes.com/here-now/kathmandu-s-unreal-real-estate-prices"> real estate</a>,” says the Nepal government official.&nbsp;
Casinos are also a breeding ground for laundering money, also lack a strong regulatory system.
Another shortcoming pointed out by the APG are delays in and ineffectiveness of investigations and prosecutions relating to money laundering. There has been international attention on scams like the Nepal Airlines Corporation Airbus 330 purchases.
In fiscal year 2022/2023, the Financial Intelligence Unit received 7,115 reports of suspicious transactions and activities and sent 505 cases for investigation. But only a few of them were ever investigated.
The Department of Money Laundering Investigation only took 12 cases to court during the first 6 months of this fiscal year and had similarly taken only a dozen cases involving a total of Rs1.74 billion last year.&nbsp;
The department was hastily set up in 2011 after the FATF warned that Nepal would be blacklisted, but so far, it hasn’t gone beyond appeasement and whitewashing.
“If money laundering cases are to be investigated, they would involve either those at the upper echelons of power or those connected to them,” a former government official who worked at the department told us, “How then would any investigation move forward?”
The Home Ministry has also been slow to prepare a list of people suspected of terrorist activities and make such a list available for monitoring even though it is an international requirement.&nbsp;
Nepal has also not worked on a new assessment report to recommend measures to prevent money laundering since the last report was prepared in 2020.
Nepal will most certainly be on that grey list later this month, and this will negatively impact the country’s reputation on the global stage as well as its foreign investment prospects.&nbsp;
In December, Nepal had received a ‘BB-’ rating from the US credit rating agency Fitch, becoming the second-highest rated country in South Asia, after India. Government officials have been suggesting that this raiting would help attract foreign investment.
As it stands, financial institutions here may bear the brunt of the grey list status. Banks may find it difficult to conduct international transactions, and transaction costs may rise, which will in turn make imports more expensive and hinder exports.&nbsp;
Nepal being on the FATF grey list also means that the government will find it more difficult to obtain financial assistance and concessional loans from donor countries and international organisations. Interest rates on loans taken by Nepal’s government and private financial institutions from abroad will also go up.
Additionally, as soon as Nepal is placed on the grey list, financial institutions will begin to closely monitor transactions made by the <a href="https://nepalitimes.com/editorial/brain-drain-into-brain-gain">diaspora around the world</a>, which will affect Nepali students and <a href="https://nepalitimes.com/here-now/a-long-way-to-europe">migrant workers</a> seeking to open accounts in foreign banks, as well as those <a href="https://nepalitimes.com/editorial/the-new-equaliser">sending remittances back home</a>.&nbsp;
“Any obstacles in the flow of remittance through official channels will spell a disaster for Nepal’s economy,” a government official told us.&nbsp;
Nepal government and relevant authorities must actively try to get out of the grey list as soon as possible. The FATF and APG will give Nepal a year to get off the list of countries at risk, failing which Nepal will be placed on the blacklist and be isolated from the global stage.&nbsp;
Says Bhattarai: “It is not enough to have made laws, we need results. Nepal must be committed to acting against leaders, lobbyists, and those with access and connections involved in criminal financial dealings.”

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<figure><img width="2090" height="1386" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161120/636d178d9c7e80680e0ac773jpeg.jpg" alt=""/><figcaption></figcaption></figure>A global investigation by the International Consortium of Investigative Journalists (ICIJ) has revealed that well known political and business figures are using tax havens for money laundering. Among the names in the latest leaks is that of Nepal’s richest man, as well as other prominent businessmen in the country.The names are contained in the ‘Pandora Papers’ leaks, a sequel to the ‘<a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/new-autocrats-global-investigative-journalism-conference-South-Africa,4058">Panama Papers</a>’ that had already exposed thousands of people around the world, as well as revealed their secret email correspondence with banks and investment partners to hide their wealth.The Washington DC-based ICIJ provided to the Centre for Investigative Journalism Nepal (CIJ) documents pertaining to Nepal that involve the Chaudhary Group, Golchha Organisation and other notable Nepalis with political connections. <img width="640" height="646" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d17909c7e80680e0ac774jpeg.jpg" alt="">The ICIJ and 600 collaborating journalists in 117 countries pored through a trove of 11.5 million leaked documents in the largest media collaboration ever to reveal the findings. The ‘data tsunami’ in the Pandora Papers reveal shady offshore dealings of people like the leaders of Ukraine and the Czech Republic, the King of Jordan, former British Prime Minister Tony Blair and people from Imran Khan’s inner circle.From the leaked documents ICIJ provided CIJ, the secret correspondence and other seem to show that Nepal’s top businessmen violated the laws of the land by having investments abroad, buying and selling shares and setting up shell companies in tax havens like the British Virgin Islands, Cyprus, Mauritius, Singapore and other financial centres.Nepali investigative journalists Krishna Acharya and Ramu Sapkota led a team that analysed the Pandora Papers and found that the Nepali companies had front entities registered in the British Virgin Islands (BVI) in the names of family members and associates through which they moved money to a series of shell companies to launder money without detection. <img width="640" height="850" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d17949c7e80680e0ac775jpeg.jpg" alt="">Prominent among the names in the leaked papers is that of Binod Chaudhary, Nepal’s only known dollar billionaire who was ranked the 2,141st richest man in the world by Forbes in 2018. The Pandora Papers reveal that he has companies in the BVI in the names of his wife and three sons, Nirvana, Varun, and Rahul.The leaks provided to CIJ show that the Chaudhary family has registered the companies Cinnovation Incorporated, CG Hotels and Resorts Limited, Sensei Capital Partners Inc. in BVI, and CG Hospitality Holdings Global Pte Ltd in Singapore. Officials at Nepal Rastra Bank told CIJ that Chaudhary did not have permission to hold these investments abroad.  Chaudhary has argued that his foreign investments are all legitimate, but he has admitted to using loopholes in Nepal’s Income Tax Act allowing citizens living abroad for more than 183 days a year to invest around the world.Chaudhary says in his biography published in 2013: ‘I took advantage of this (loophole) and decided to stay abroad for more than 183 days a year and become a temporary citizen of my own country. Today, my two sons Rahul and Varun are doing business abroad as non-resident Nepalis.'In a response to CIJ's query, Binod Chaudhary's son Rahul said his group had not violated any Nepali or international laws, including those governing foreign investment. "CG and its group of companies are in partnership with some of the most respected, reputed and leading multinationals globally, information of which is readily available in the public domain," he added. "We do not wish to comment on allegations against our business partners."When CIJ showed Nepal’s former Finance Secretary Rameshore Khanal the leaked documents, he said Chaudhary had clearly misused the system because the law does not allow a Nepali citizen to take money out of the country as Chaudhary appears to have done. He and two of his relatives named in the leaks are Nepalis citizensThe Pandora Papers has minute details of company correspondence, share and money transfers and other transactions between Chaudhary family members and partners. Some of the names mentioned are Pakistani, Singaporean, Sri Lankan and Bangaldeshi. One of those involved in Cinnovation in Chaudhary’s company registered in BVI is US national of Bangladeshi descent, Abdul Awal Mintoo, who was investigated in 2018 by the Anti-corruption Commission in Dhaka over money laundering and loan extortion allegations.In releasing the Pandora Papers leaks, ICIJ says that there is a vast underworld of global money transfers that work through layers and layers of offshore shell companies that are difficult to trace.“There is a shadow economy, a shadow world out there that we are not aware of that is enriching people who are already rich. Shell companies are essentially the getaway vehicles for crime in the offshore world,” ICIJ director Gerard Ryle told Australia’s ABC tv in an interview ahead of the release of the Pandora Papers. He added: “The offshore world exacerbates poverty. It leads to inequality.” Although some of the businessmen named in the papers have been nominated to Nepal's Parliament by parties, there has not been any direct involvement of politicians in money laundering through offshore companies. <img width="640" height="916" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161124/636d17969c7e80680e0ac776jpeg.jpg" alt="">But the Centre for Investigative Journalism Nepal says politicians seem to be colluding with their business partners because there has been no investigation after <a href="https://www.nepalitimes.com/latest/nepalis-in-tax-havens-swiss-banks-money-laundering/">its 2019 NepalLeaks</a> revelation of the <a href="http://archive.nepalitimes.com/article/Nepali-Times-Buzz/new-autocrats-global-investigative-journalism-conference-South-Africa,4058">Panama Papers</a> that brought out names of dozens of Nepalis with unlawful offshore companies.  ‘The silence of the regulatory bodies appears to be encouraging the Nepalis’ investment in tax haven countries. Pandora Papers is an outcome of that surprising silence,’ CIJ says. The other prominent Nepali business house implicated in the Pandora Papers is the Golchha Organisation. Leaked documents show it also has offshore companies in the British Virgin Islands (BVI) under the names of its patriarch Lokmanya Golchha, his brothers late Diwakar Golchha, late Mahendra Kumar Golchha, cousin Chandra Kumar Golchha and Diwakar’s son Hitesh Golchha. Leaked documents examined by CIJ show that a Geneva-based law firm named Overseas Management opened an account at Barclays Bank in Switzerland in 2008 on behalf of Flatwood Limited operated by Golchha family members. The paper trail also shows that  Diwakar Golchha bought shares of Eastern Sugar Mills Limited in Nepal in 2008 through Flatwood Limited. Golchha Organisation is one of the pioneer industrial houses in Nepal and its founders established the Biratnagar Jute Mill nearly 70 years ago. In fact, the 2019 NepalLeaks mentioned that Golchha Organisation was the first Nepali company to bring in foreign investment from the British Virgin Islands through Flatwood to operate companies in Nepal.  Earlier CIJ investigations in 2017 showed that in a questionable deal, Golchha’s Eastern Sugar Mills was allowed by the Tax Settlement Commission to get away with paying only Rs400,000 when it owed the treasury Rs52 million in back taxes. Two members of the Commission and the director of the Inland Revenue Department are still facing corruption charges in the Special Court for granting allegedly illegal tax breaks to the Golchhas.  Political links Like Binod Chaudhary, Diwakar Golchha was also nominated by the Nepali Congress to the Constituent Assembly-Parliament in 2008, showing the political links of many of the businessmen named in the ICIJ documents.  The other person with close links to Maoist Centre leaders is Ajeya Sumargi Parajuli, who was exposed in the CIJ NepalLeaks for allegedly transferring money from Nepal to tax havens the suspected ill-gotten wealth of politicians. The papers also showed that Sumargi’s Zhodar Investments in BVI transferred $48,372,222 to his companies in Nepal in 2010. Zhodar’s co-owner is Cyprus national Sotirios Pittas, a lawyer and Sumargi business partner, the leaked documents show.  According to Pandora Papers, Sumargi also invested in Worldwide Incredible Limited in the BVI in 2011, and several other companies based in the tax haven. Some of the monies from BVI have been transferred indirectly to Sumargi’s companies in Nepal, including Hetauda Lime Industry Pvt Ltd, Everest Mineral Products Pvt Ltd, Muktishree Pvt Ltd, according to the Pandora Papers.  CIJ also found leaked documents that show Sumargi’s other company, The New Digitek getting permission to hold 50% share in Nepali mobile companies, including Nepal Telecom Private Limited.  Among the Pandora Papers is also a slew of email correspondence from BVI lawyers at Trident Trust Limited who warned that action would be taken if  Sumargi did not provide mandatory details for Zhodar Investments.  While poring through the Pandora Papers, CIJ’s investigative journalists Krishna Acharya and Ramu Sapkota found that Sumargi’s business partner in Nepal, Arjun Prasad Sharma, also registered a company in BVI in 2019.  In a convoluted money trail that involved several other shell companies, Sharma and Sumargi are seen to have worked in 2019 with the same Cypriot investment company, Sotioris Pittas &amp; Co LLC.  Other names The other prominent people named in the Pandora Papers leaks is Radhe Shyam Saraf and his family, who own the Taragaon Regency Hotel and Yak &amp; Yeti Hotel in Kathmandu. The documents that CIJ reviewed appear to show that the family has channelled money through companies in the British Virgin Islands to invest in Nepal.  CIJ also found documents in the leaked papers showing that the Saraf family are involved in companies in Belize, Lichtenstein and Mauritius and there appear to be questions regarding their investment in Hyatt International. Saraf had already been embroiled in controversy in Nepal over the Taragaon property and has been investigated by the Office of the Auditor General, the anti-corruption agency and the Ministry of Tourism. The other Nepali businessmen mentioned in the Pandora Papers who have invested in suspected shell companies offshore tax havens include Rajendra Shakya, Purushottam Poudyal, Sudhir Mittal, and others.  Detailed report on the Pandora Papers in Nepali and English of the Centre for Investigative Journalism Nepal (CIJ): <a href="https://cijnepal.org.np/">https://cijnepal.org.np</a>

Nepal’s richest man in the Pandora Papers

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131144/636a4fd29c7e80680e04fd2bjpeg.jpg" alt="" width="2922" height="1834"/>Nepal will be evaluated for international money laundering activities by the APG (Asia Pacific Group) of the Financial Action Task Force (FATF) during 2019, and may be blacklisted if the government does not adequately crack down on illegal cross-border money transfers.If Nepal is not able to come up with a workable mechanism to identify criminal activities and bring offenders, including prominent businesspersons and politicians, under the purview of the law by the end of 2020 it faces the danger of being blacklisted by the task force.The FATF was established in 1999 to track down and stop money laundering and funding of terrorist activities around the world. Nepal is a member of its associate organisation APG, which investigates regional member countries. With an investigation due, Nepal had hastily passed the Money Laundering Prevention Act in 2008, but took 2 years to implement it.An APG working committee evaluated Nepal, and concluded that its attempts to control money laundering were not effective enough. On February 2010, it put Nepal on an international monitoring list. Nepal then established a Money Laundering Investigation Department. With the help of the IMF and World Bank, the government created legal structures and adopted policies to prevent money laundering. After it took these steps, it was removed from the international monitoring list, which meant that it was not prohibited from doing financial transactions with other countries or international organisations.Though Nepal improved its legal stance on money laundering after the first international investigation, it does not seem to have made much progress since then in actually preventing tax evasion and money laundering.Read also: <a href="https://www.nepalitimes.com/opinion/so-youd-like-to-do-business-in-nepal/" target="_blank" rel="noopener">So you’d like to do business in Nepal?</a>, Ritu Pradhan MallaIn the past, the APG had evaluated Nepal on the basis of its legal safeguards and policies. However, in future it will be looking for concrete action to see if Nepal implemented the 40 suggestions and 11 results that it made in 2010. “The next evaluation will be focused less on laws and more on implementation and results,” admits Binod Lamichhane, spokesperson of the Money Laundering Investigation Department. “So if our implementation remains as weak as it is, it could create problems for us.”Experts say the government will find it very difficult to implement its own laws because so many of those involved are powerful businessmen enjoying political protection. “If the Money Laundering Prevention Act is implemented, then politicians and officials will have a hard time showing the source of their earnings. Which is why implementaction of the Act never became a priority for Nepal. Clearly, it was created only as a showpiece to assuage foreigners,” a former director general of the department confided.Indeed, although everyone agrees that corruption and tax evasion are rampant in Nepal, there is no record of prominent persons being investigated for it. However, since the APG will be investigating on its own next year, the department has been forced to conduct its own secret probes. Director General Rup Narayan Bhattarai says he cannot speak about the investigations at the moment but according to sources, well known Nepalis, including a businessman who is expanding outside Nepal, another tycoon who created an international business network after the 2006 movement, a prominent trader accused of gold smuggling and an industrialist who suddenly switched to tourism, are under investigation.However, the going is not expected to be easy, because the Money Laundering Investigation Department lacks coordination with other powerful agencies, which is international practice and considered essential to investigate money laundering. Though the law states that Nepal Rastra Bank should coordinate with other agencies and provide information to the department about suspicious financial transactions, the implementation of this law is weak.“Since our mechanism for identifying illegal wealth is weak, we are not able to figure out if the money, property, shares, gold, etc, deposited in banks are legal or not,” says an official of the bank. “So at the moment we are unable to effectively pass on useful information.”Currently, FATF has blacklisted Iran and North Korea, while 12 countries, including Sri Lanka, Pakistan, Cambodia, Ethiopia, and Syria, are currently on its international monitoring list. Nepal risks joining these countries if the APG evaluation does not meet international criteria for transparency.

Nepal risks being blacklisted on money laundering

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101132/636a22c09c7e80680e0417a6jpeg.jpg" alt="" width="800" height="542"/>In February 2015 The International Consortium of Investigative journalists (<a href="https://www.icij.org/">ICIJ</a>) revealed that Nepalis held Rs5 billion in secret Swiss bank accounts. Most people thought the money must have been parked there by Nepal’s corrupt politicians.But after the Centre for Investigative Journalism Nepal (<a href="http://cijnepal.org.np/category/english-posts/">CIJ Nepal</a>) went through 3,000 pages of documents from <a href="https://www.icij.org/investigations/swiss-leaks/">Swiss Leaks</a>, <a href="https://offshoreleaks.icij.org/">Offshore Leaks</a>, the <a href="https://www.icij.org/investigations/panama-papers/">Panama</a> and <a href="https://www.icij.org/investigations/paradise-papers/">Paradise Papers</a>, the names were of Nepal’s top business people. Even foreigners had deposited money in the banks using Nepali addresses and documents.Savings of Nepalis in the banks have now crossed Rs50 billion, email correspondence between CIJ Nepal and Swiss banks show.The records also reveal that Nepalis started to deposit money in Swiss banks the year after the Maoist insurgency began in Nepal in 1996.Nepalis had Rs1.25 billion in the Swiss National Bank in 1996, but that figure doubled to Rs4.1 billion by 2006, when the war ended. Nepalis deposits in the two years after the conflict declined to Rs3.9 billion. Records show that Nepali have withdrawn Rs 15.6 billion from Swiss banks so far.The biggest Nepali depositers in a Swiss bank are Minu Shah Chhibber, and her two sons who live in the UK. They had Rs2.6 billion in Swiss banks in 2006-7. Even some foreigners are found to have used Nepali documents to deposit their money in Swiss banks, including an Israeli national using a Nepali passport to open an account with ‘Kathmandu’ as his address. Other account holders who have Nepal connections are Indians.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101132/636a22c39c7e80680e0417a7jpeg.jpg" alt="" width="1250" height="813">Despite it banking secrecy laws, an agreement between the Swiss government and the European Union in 2015 after the Swiss Leaks ends the exclusive confidentiality, and the Swiss agree to provide account details if demanded. The ICIJ says Swiss banks have profited from dictators, corrupt politicians, business persons who evade taxes and organisations that make money through the illegal transaction of weapons and drugs by allowing them to deposit their earnings.The country with the biggest Foreign Direct Investment (FDI) in Nepal is not China, India or the United States as one may presume, but the tax haven state of the British Virgin Islands. Of the total Rs137.67 billion received as FDI in the last two decades, the share of the British Virgin Islands (BVI) accounts for 45%. They obtained approval from the Nepal government to invest in and establish industries worth Rs8 billion.In 2017, the Panama Papers revealed that seven Nepalis including Upendra Mahato, the founder of Non-resident Nepalis Association, had invested in tax haven states. The ICIJ and CIJ Nepal collaborated in digging more into these investments, and found that Nepali businesses have used tax havens to evade taxes in Nepal or to transfer the illegally earned money to launder it. The money was then repatriated to Nepal under foreign direct investment (FDI).Investigations show that Birendra Mahato, a former lawmaker and central committee member of Federal Socialist Forum party, his elder brother Upendra Mahato, Niraj Govinda Shrestha, a non-resident Nepali and Ajeya Raj Sumargi, a businessman, are involved in this elaborate money laundering scheme. They used the sale of the telecom company Ncell to avoid paying capital gains tax in Nepal.After a G-7 Summit established the Financial Action Task Force on Money Laundering (FATF) to combat money laundering and terrorist financing the Paris-based organisation has been blacklisting countries. The FATF blacklists countries not cooperating in anti-money laundering financing. Nepal committed to abide by the criteria drawn up by the FATF and its Asia-Pacific Group in 2012 and passed the Money Laundering-related Act.  However, given these revelations, there is still a possibility that Nepal could be blacklisted in future.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101132/636a22c69c7e80680e0417a8jpeg.jpg" alt="" width="1250" height="797">“While Nepal avoided the scrutiny and monitoring criteria of the global community in 2014 due to legislation and institutional reforms, there has not been effective implementation of the laws,” states Finance Minister Yuba Raj Khatiwada’s white paper on the economy last March.Nepali companies have also dealt with Mossack Fonseca, the intermediary law firm in BVI that helps businesses to want to launder their money by finding them legal loopholes in tax haven countries. In 2015, the ICIJ published details of the firm in the Panama Papers, after which it closed down.Panama Papers emails show that in 2008 Nepal’s Milap Group approached Mossack Fonseca to bid for a tender from the Nepal Supreme Court calling for an international consultant for Judicial Mapping and Judicial Assessment for a project on legal and judicial reforms. Milap Group emailed to Mossack Fonseca proposing to jointly apply for the tender, which a Mossack Fonseca official declined, saying the two could collaborate in future. Milap Group has been involved with foreign companies printing excise stickers for Inland Revenue Department, bank notes for Nepal Rastra Bank and passport printing and supply of Ministry of Foreign Affairs.Another company linked to Mossack Fonseca is Nepal Ventures registered in BVI. It is not clear from the Panama Papers who was listed as the owner, but a company with a similar name is registered at the Office of Company Registrar in Nepal with Dhanusha lawmaker Juli Kumari Mahato as main investor. The company has 20 percent share capital investment in United Telecom Limited. Mahato is the wife of Raghubir Mahaseth, Minister of Physical Infrastructure and Transport and sister of Upendra Mahato and Birendra Mahato. When asked, Juli Kumari Mahato denied having investments abroad, and said “it is a mere coincidence” that a company with similar name existed in the British Virgin Islands.The ICIJ and CIJ-Nepal investigations have also shown how money is laundered from tax havens into Nepal as Foreign Direct Investment (FDI). Records show that the Saurabh Group chaired by Bishnu Prasad Neupane, brought foreign investment from the BVI to build a hotel in Bhaktapur, but construction was stopped after Madhyapur Thimi Municipality found the 17-storey building only had permission for a five-floor structure.Saurabh Group brought the investment for the hotel from the BVI-based Global Technology and Trademark Company, and the Rs1.94 billion proposal was approved by the Department of Industry in 2013.Sulav Agrawal is the director of four companies under the Saurabh Group and brought Rs300 million in FDI from a UAE-based company to manufacture soap and betel nuts in Birganj. Agrawal is also vice-chairman of Shankar Group, but the UAE company has the same name as the one based in the BVI: Global Technology and Trademark which was also found to be evading taxes in its ventures in Parsa district.Krishna Holdings Ltd of Hong Kong has a 45% stake in Sarbottam Cement Pvt Ltd of Nawalparasi, also run by the Saurabh Group. The remaining 55% shares are owned by Neupane and his relatives. Just like how Global Technology and Trademark is operating out of not just the UAE but also the BVI, the Hong Kong-based Krishna Holdings is related to the UAE-based Krishna International.Krishna International Ltd has mentioned on its website that it has invested in as many as 22 countries including Nepal, Mauritius and Cyprus. Ramesh Kumar Sawarthia has brought Rs29.5 million from Hong Kong to build a commercial complex in Gyaneswor, Kathmandu in 2005.The British Virgin Islands-based Global Technology and Trademark has also invested Rs 240 million in the printing and lamination sector. This company has no Nepali partner, but Saurabh Group’s Jagadamba Synthetic and Quality Roto Packaging is also in the printing and lamination business.Four companies in which Saurabh Group’s Neupane has invested, have benefitted from Nepal’s controversial tax settlement policy which allowed them to get away with paying just 3.45% of the total taxes due to the state after a Commission formed by Finance Minister Ram Sharan Mahat in 2015 waived payments.The CIJ Nepal Nepal investigation based on the Paradise Papers leaks obtained by the German paper Süddeutsche Zeitungin 2017 also unearthed links between Nepal’s Laxmi Cement and tax havens in the BVI, the Isle of Man, Seychelles as well as two Indian investors. Shareholders of Laxmi Cement are also involved in KEPY Cement Udyog of Dhading and Ghorahi Cement of Dang.The Act Restricting Investment Abroad, 1964 bars Nepalis from investing in a foreign country, but the ICIJ and CIJ-Nepal investigation found that 55 Nepalis have invested in foreign countries which includes well-known captains of industry in Nepal and non-resident Nepalis. Although the law does not bar NRNs from investing abroad, but there are questions about their offshore companies.Former lawmaker Birendra Mahato, who is currently a central member of the Sanghiya Samajbadi Forum-Nepal, has invested in the ‘OJSC Amkodor Holding Limited Company’ in Belarus with his brother Upendra and another overseas Nepali Niraj Govinda Shrestha, and a foreign partner Romeo Abdo, who also happens to be linked to the Ncell tax-evasion case. Abdo, who is of Lebanese origin has been doing business in Belarus, represented the TeliaSonera in Ncell in whose ownership transfer of nearly Rs61 billion (the amount has reached Rs 72 billion now) was implicated in evading Nepal’s capital gains tax. Birendra Mahato admitted having the investment seven years ago, but not anymore, and denied knowing Abdo.For full five-part investigation go to <a href="http://cijnepal.org.np/category/english-posts/">CIJ Nepal</a>

Nepalis in tax havens, Swiss banks, money laundering

Just few days into office, President Donald Trump has brought about a work-stop to ongoing USAID supported projects and complete stop to new grants or aids. The executive order was justified under Trump’s ‘America First’ promise, and it has shaken up recipient countries, including Nepal. Since 1951, USAID has provided $1.5 billion in aid to Nepal. The breakdown for recent years is $105.94 million for 2020-21 and US$ 125 million in 2018-19. In 2022, USAID and Nepal signed a five-year Development Objective Agreement worth $659 million (pictured, above).&nbsp; Some of the key sectors where USAID has supported and supports Nepal with aid include health, education, agriculture, infrastructure; economic growth, humanitarian aid and women and children empowerment. All of these projects will be affected, and grants disbursement suspended. According to USAID’s Country Development Cooperation Strategy (December 2020-December 2025), the overall goal of the USAID’s development cooperation in Nepal is to realise ‘A more self-reliant, prosperous, and inclusive Nepal that delivers improved democratic governance and health and education outcomes.’ Four identified development objectives are:&nbsp; i) More Effective, Participatory, and Equitable Democratic Ecosystem ii) Broad-Based and Inclusive Economic Growth Fostered iii) Inclusive Health and Education Systems Strengthened iv) More Equitable and Improved Natural Resources and Disaster Risk. Under these development goal and objectives as per the data available under Government of Nepal’s Aid Management Platform (AMP) there are currently USAID supported 21 key projects ongoing in Nepal.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250126090140_0bd9163cb9826464409887995eb8f2eff42c7cf1269610c3761773cde59ff52c.jpg" data-media-id="editor_0" data-image-id="20250126090140_0bd9163cb9826464409887995eb8f2eff42c7cf1269610c3761773cde59ff52c" data-rendition-name="original" width="1005" height="825" loading="lazy" alt="USAID fund in nepal after Trump"> </figure>  These 21 projects with some data missing totals a commitment of $178,140,467 from 2021-2029 in Nepal. Of these commitments $89,115,031 (about half) have already been disbursed. With Trump’s executive order the rest of the 50% is now going to be on hold until the review is completed and further decisions are made by the new US administration.&nbsp; Most development goals of USAID in Nepal are embedded with key principles like ‘equity’ and ‘inclusive’. With the Trump government’s aversion to the previous emphasis on Gender, Equity, Inclusion and Accessibility (GEIA) principles, projects focusing on those issues will be hit hardest. USAID upheld policies and actions that promoted equal access and opportunities for all people, with an emphasis on the Tarai, gender issues, family health and through contractors on human rights and democracy. The impact on Nepal’s development aid will be substantial, affecting livelihoods in incomes generated by USAID supported projects. Individual independent consulants already received notices over the weekend that the work they were &nbsp;doing under a USAID contract is subject to work-stop now.&nbsp; The question is whether the 5-year Country Development Cooperation Strategy for Nepal that finishes by end-2025 will go ahead. And when the new post-2025 Strategy is formulated, it is certain that the Trump’s administration will not entertain GDEI, which so far has been people-centered and not political.&nbsp; Kishor Pradhan is an independent development consultant concentrating on development information and knowledge management issues. <a href="mailto:kishorpradhanktm@gmail.com" target="_blank">kishorpradhanktm@gmail.com</a>

How USAID cut affects Nepal

They are rare, they are elusive and they are so well camouflaged, they are difficult to see, even when they are right there. That is why <a href="https://nepalitimes.com/opinion/comment/nepal-brings-back-the-snow-leopard">snow leopards</a> are called the ‘Ghosts of the Himalaya’. And because they are also regarded as being sacred, they are called ‘God’s Pets’.&nbsp; Nepal has <a href="https://nepalitimes.com/news/does-nepal-really-have-too-many-tigers">tripled its tiger population</a> in 12 years since 2010. There have been successive years with zero rhino poaching and the numbers have bounded back. But few know about the country’s success story with snow leopard conservation. Preliminary data from an on-going census shows that Nepal ranks fourth among the 12 snow leopard range countries in central and South Asia. This is despite the country having just 2% of the total area where snow leopards can be found.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250127070148_0f22a5439d56e5db58d8f65789ee4ff5e87a29c898d5e8cbff60bf8f1814af4b.jpg" data-media-id="editor_2" data-image-id="20250127070148_0f22a5439d56e5db58d8f65789ee4ff5e87a29c898d5e8cbff60bf8f1814af4b" data-rendition-name="original" width="1311" height="724" loading="lazy" alt="snow leopards in Nepal NT 1"> <figcaption>Despite possessing just 2% of the snow leopard range across Central and South Asia, Nepal has the fourth highest number of elusive mammals in the world. Photo: TASHI R GHALE </figcaption> </figure>  Nepal also leads in <a href="https://nepalitimes.com/news/satellite-tracking-snow-leopards-in-nepal-to-study-climate-impact">snow leopard research</a>. Less than 3% of the snow leopard range has been studied through camera traps and genetic studies, but it is Nepal that has done the most. <a href="https://nepalitimes.com/here-now/nepal-leads-in-snow-leopard-study">Over 100 Years of Snow Leopard Research</a> by the World Wildlife Fund (WWF) in 2021 showed that 74% of the snow leopard habitat in northern Nepal has been the subject of research into the species. “We are leading globally when it comes to snow leopard conservation and study, starting from 2013 in Kanchenjunga using GPS to study their habitat,” says <a href="https://nepalitimes.com/here-now/conversation-with-mr-conservation">Ghana S Gurung of WWF Nepal</a>. “We also found via camera traps they went as high as 5,800m and as low as 2,600m.” There are an estimated 300-500 snow leopards across high mountain Nepal with Dolpo, Manang and <a href="https://nepalitimes.com/banner/participating-to-save-kangchenjunga">Kangchenjunga</a> the main hotpots for the endangered species. Unlike with tigers and rhinos which are poached by wildlife traffickers, snow leopard killings are mostly retaliatory for killing livestock. Snow leopards attack yaks, sheep and goats of herding communities in the mountains. One of the most effective methods to protect the species from traps and poisoning is to help local communities build mesh wire corrals. The San Francisco-based <a href="https://snowleopardconservancy.org/">Snow Leopard Conservancy</a> through the Nepal group <a href="https://www.mountainspirit.org.np/">Mountain Spirit</a> has designed and tested portable corrals that can move with herders.&nbsp; “They move all year around so that the livestock have enough pasture to graze on, which is why it was important that our improved corrals could be dismantled and moved around,” explains Shailendra Thakali of the Snow Leopard Conservancy. The team consulted herders in Manang and Mustang while developing the corrals based on traditional design, with a stone base but wire mesh on the sides and the roof as well as strong wire gates for secure closure. They are also using fox lights to deter activities at night.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025012803018_4a166ea1124008cfcf551ffd59c5841acb2bc9c443d9fbe56490b280492eb441.png" data-media-id="editor_9" data-image-id="2025012803018_4a166ea1124008cfcf551ffd59c5841acb2bc9c443d9fbe56490b280492eb441" data-rendition-name="original" width="2244" height="1246" loading="lazy" alt="corraling"> <figcaption>Improved corrals in Manang and Mustang made up fo mesh wires to protect livestock from snow leopard attacks. Photo: PURNA MAN SHRESTHA</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250127070152_009bc57c5d2244a393a8423d56098f921ed29b8d0a60a9c15422dd58615b5e5b.jpg" data-media-id="editor_10" data-image-id="20250127070152_009bc57c5d2244a393a8423d56098f921ed29b8d0a60a9c15422dd58615b5e5b" data-rendition-name="original" width="4032" height="3024" loading="lazy" alt="snow leopards in Nepal NT 1"> <figcaption>The corrals are portable allowing herders to move them as they take livestock for grazing in high Himalayan pastures. Photo: PURNA MAN SHRESTHA</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250127070152_3b84ce156de1ed1deea79d23a15c1a3dfa5a412dca3644deec1333bda7f91cd0.jpg" data-media-id="editor_11" data-image-id="20250127070152_3b84ce156de1ed1deea79d23a15c1a3dfa5a412dca3644deec1333bda7f91cd0" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="snow leopards in Nepal NT 1"> <figcaption>Local herders in Manang and Mustang were consulted while developing improved corrals. Photo: BRIAN PENISTON</figcaption> </figure>  Tourism and agriculture in Manang and <a href="https://nepalitimes.com/here-now/comings-and-goings-in-mustang">Mustang</a> dropped during the pandemic, and the Conservancy also helped herder communities with alternative livelihoods.&nbsp; “We trained them in basic hotel business such as lodge management skills but more importantly to restore abandoned pastures by planting jimbu which is highly valued for cooking in Kathmandu and Pokhara,” says Brian Peniston, also with the Snow Leopard Conservancy. “The tourist figures have now increased considerably and this has directly benefited 1,000 households in three municipalities.” <a href="https://www.wwfnepal.org/">WWF Nepal</a> has also collaborated with the Department of National Parks and Wildlife Conservation (DPNWC) to train locals in Dolpo and Kangchenjunga to make their own mesh wire corrals with subsidies on raw materials.&nbsp; WWF has partnered with Amchi traditional medicine practitioners to promote conservation of snow leopard in mountain communities where people trust faith healers. School eco-clubs also involve youth in conservation.&nbsp; “We must trust communities and promote local ownership when it comes to wildlife conservation, and if it were not for the communities there, snow leopards would be long gone,” says Gurung of WWF Nepal. “It is important to revive the belief that snow leopards are sacred because they are god’s pets, tie them up with the spiritual, cultural and traditional belief of the people.” Community-managed livestock insurance schemes have attained zero retaliatory killings in Kangchenjunga where WWF and the government has sent up an endowment worth Rs10 million to compensate herders for snow leopard kills. A similar scheme is being implemented in Dolpo which has double the density of snow leopards compared to Kanchenjunga.&nbsp; But the compensation mechanism is cumbersome and often inefficient. Claimants need to provide photographic evidence with tags of the livestock still attached but snow leopards often go for the head and tags are lost. The evidence has to be submitted promptly, and this is difficult for herders in isolated villages.&nbsp; Insurance agents are based in headquarters like Chame in Manang and are not willing to travel all the way up. Similarly, photographic evidence needs to be assessed by veterinarians who are also reluctant to go to remote areas that take up days. “The compensation policy hasn’t changed in the last 20 years,” says <a href="https://nepalitimes.com/review/snow-leopard-redux">Tashi R Ghale</a>, high-altitude wildlife photographer and conservationist. “Here in Manang, herders would get Rs6,000 in compensation for a yak when the market rate was Rs20,000. The market rate is now Rs150,000 but they still get only Rs6,000. Even then, they have to wait for months.” Brian Peniston feels improving and tailoring compensation suitable to the landscape is of utmost priority, and the schemes need to be more accessible and effective as well as herder friendly. He adds, “Local governments should be handed authority in these matters, and it should be equal parts trust and verify. It is over-verification at the moment.” Climate breakdown has added to the challenge of snow leopard conservation. Either blizzards or winter droughts mean fewer prey for the mountain cats, this in turn has also led to leopards preying on livestock. Usually, the wild prey to livestock ratio in a snow leopard diet is 70:30. Blue sheep (pictured below) are the main prey species for snow leopards, but there is now competition with lowland spotted leopards which have moved up the mountains, while the Himalayan wolf has descended. The prey density may not have decreased, but predator species have more than doubled.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250127070156_f23ed8414be46782c90df4198d46c30f423d63d59f97343f89760283011c7c0b.jpg" data-media-id="editor_15" data-image-id="20250127070156_f23ed8414be46782c90df4198d46c30f423d63d59f97343f89760283011c7c0b" data-rendition-name="original" width="1400" height="1050" loading="lazy" alt="snow leopard conservation in Nepal"> <figcaption>The climate crisis has meant that lowland spotted leopards which have moved up the mountains, while the Himalayan wolf has descended, leading to a reduced number of blue sleep which is one of the main prey species for snow leopards. Photo: SHAILENDRA THAKALI</figcaption> </figure>  Other disrupters include <a href="https://nepalitimes.com/multimedia/the-human-cost-of-nepal-s-yarsa-gold-rush">overharvesting of yarsagumba</a> and increased movement in this fragile landscape, with adverse impacts on all wildlife, not just snow leopards. Expansion of the road network to the remotest corners of the country is another concern, adding to the risk of human-wildlife conflict and poaching.&nbsp; “There has been much research on snow leopard behaviour in the last 30 years but what we haven’t done nearly enough is study human behaviour,” says Peniston. Despite the challenges, the rebound of snow leopard populations has increased the opportunity to <a href="https://nepalitimes.com/banner/trekking-to-save-nepals-snow-leopards">snow leopard viewing eco-tourism</a>, as is being practiced in Dolpo.&nbsp; Says <a href="https://nepalitimes.com/review/ice-to-water-alv4lorf">Tashi R Ghale</a>: “Local communities here in Manang and Dolpo are doing what they can, but the Nepal Tourism Board needs to step in to promote snow leopard trekking and tourism. The co-benefits would motivate communities to protect the big cats.” &nbsp;&nbsp;&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250127070156_698d64632273185cecbcaca626c7c49861ba54a0930119843792572f01114942.jpg" data-media-id="editor_19" data-image-id="20250127070156_698d64632273185cecbcaca626c7c49861ba54a0930119843792572f01114942" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="snow leopard conservation in Nepal"> <figcaption>FIND ME: Elusive in nature, snow leopard sightings are rare and often only detected on camera traps (below). Spot the snow leopard in this picture taken by conservationist Tshiring Lhamu Lama in Dolpo, a hotspot for big cats in Nepal. Photos: TSHIRING LHAMU LAMA</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025012708018_42acdb2ba0c5941b1c3a89ede1bac048808d6424f4c70aadb68df6ab5176bbb6.jpg" data-media-id="editor_20" data-image-id="2025012708018_42acdb2ba0c5941b1c3a89ede1bac048808d6424f4c70aadb68df6ab5176bbb6" data-rendition-name="original" width="2041" height="1314" loading="lazy" alt="Snow leopard conservation in Nepal"> </figure>  &nbsp;

Ghosts of the Himalaya

In December, the Nepal government announced it would not allow a Beijing-appointed Tibetan spiritual leader, the Panchen Lama, to attend a Buddhist conference in Kathmandu. Immigration at the airport was put on high alert to ensure he did not try to sneak in.&nbsp; Coming soon after Prime Minister K P Oli’s visit to China, that decision underscored Nepal’s precarious tight-rope act in addressing religio-political sensitivities in its relations with China. The Panchen Lama episode can be seen as a test for Nepal’s handling of the succession of the Dalai Lama, who turns 90 in July. “When the time comes to find a successor to the Dalai Lama, Nepal will face a larger policy dilemma,” predicts Sudheer Sharma, author of two recent books on Nepal-China relations. “The government is still unclear what it will do if the successor is chosen from the Tibetan community in Nepal, or from China or India.” <a href="https://nepalitimes.com/news/dalai-lama-gets-block-of-glacial-ice">The Dalai Lama</a> is the spiritual leader of Tibetan Buddhism and a symbol of Tibetan identity; he is revered as the manifestation of Avalokitesvara, the Bodhisattva of Compassion. He was born in 1935 in northeastern Tibet and was formally recognised as the Dalai Lama in 1940.&nbsp; He has been living in exile in Dharamsala for the past 65 years after fleeing Lhasa following the Chinese takeover. He has been allowed to make a low-profile visit to Lumbini only once in 1987, and never after that due to objections from China.&nbsp; Nepal does not have a national strategy to handle the presence of <a href="https://nepalitimes.com/news/nepal-s-sherpas-mourn-tengboche-abbott">religious leaders</a>. If there are policies, they are ad-hoc or undeclared, depending on the government of the day in Kathmandu. The Nepal government, under Chinese pressure, even prevents public celebrations marking the Dalai Lama’s birthday on 6 July. “The Dalai Lama’s attempts to visit Nepal again have been stopped &nbsp;since Nepal thinks he is not only a religious leader, but a political figure as well,” says Sharma. “There is no discussion in Nepal’s political circles regarding the succession of the Dalai Lama. The topic is regarded as a non-issue.”&nbsp; Over the years, the Dalai Lama has made various statements regarding his succession. At times, he has suggested that he will write a will to select a successor from within the Tibetan community. On other occasions, he has hinted that the next Dalai Lama could be chosen from a “free country”, and could even be a woman.&nbsp; The Panchen Lama succession in 1995 could provide a hint about how the post-Dalai Lama era will play out. The Panchen Lama is the second most important spiritual leader in Tibetan Buddhism, and heads the <a href="https://archive.nepalitimes.com/news.php?id=18580">Tashilhunpo Monastery in Xigatse</a>, the epicentre of the 7 January earthquake, located 250km away from Lhasa.&nbsp; The Panchen Lama traditionally has the role of finding the next Dalai Lama, but the previous Panchen Lama (Lobsang Trinley Lhundrup Choekyi Gyaltsen) has been missing since 1995, after the Chinese installed their own candidate (Gyaltsen Norbu). The present Panchen Lama’s visits are carefully planned, and he has made only one foreign visit so far, to Thailand. “Nepal did not permit Panchen Lama’s visit as he is Chinese Communist Party-appointed, thus making him a political figure,” says Amish Mulmi, author of the book All Roads Lead North.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250124090148_3bb3d803c04c34657d0ac9759ca904073f75734a446506f8a57e50178b381c00.jpg" data-media-id="editor_3" data-image-id="20250124090148_3bb3d803c04c34657d0ac9759ca904073f75734a446506f8a57e50178b381c00" data-rendition-name="original" width="1087" height="697" loading="lazy" alt="Dalai Lama NT"> </figure>  What China was trying to do through the Panchen Lama’s visit for the Nanhai Conference in Kathmandu last month was to project its soft power, and perhaps prepare the ground for the Dalai Lama succession. But the ban raised the question of what Nepal will do if there is a visit by Hindutva figures from India at events in Nepal.&nbsp; Religious leaders and figures from various faiths regularly visit Nepal for devotional events, meetings and conferences. Their trips are often significant for promoting dialogue and cultural exchange, and cannot be banned under the Constitution. “We did the Nanhai Conference, and in future religious leaders will definitely visit Nepal. The question arises whether or not to allow them to engage in political activities or not,” says Mulmi. “Religion has always been political. So Nepal must not take easy decisions and must think it through.” Although Nepal and Tibet fought wars in the past two centuries, they share deep-rooted and ancient cultural, religious and trade ties. After the Chinese annexation of Tibet 70 years ago, Kathmandu gradually started dealing directly with Beijing.&nbsp; Today, Nepal is the only country with a consulate in Lhasa, a city from where the only direct international flight is to Kathmandu. Over the years, these ties have evolved, with shifts in trade dynamics and people-to-people interactions reflecting broader regional and global changes. Despite this, the historical bond between Nepal and Tibet remains a significant aspect of present-day bilateral relations with China, and this is why the selection of the next Dalai Lama has resonance here. “It is clear that China has been trying to adopt Tibetan Buddhism as a soft power. It is trying to co-opt Tibetan Buddhism on the lines of China’s ambitions and narratives,” explains Mulmi.&nbsp; The Dalai Lama’s <a href="https://archive.nepalitimes.com/news.php?id=14733">considerable following</a> in Nepal, India, Europe and the United States is an irritant for Beijing. Recent Sino-American tensions have therefore given the spiritual ownership of Tibetan Buddhism a geopolitical dimension, and in this the Dalai Lama succession will become an important factor.&nbsp; Relations between Washington and Beijing during the second Trump term will have a bearing on this. As a buffer state between India and China, Nepal has historically tried to maintain equidistance between the two powers.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025012308014_95372c819980513e21490c3abe2aa8e712af6c89c5829e04d5f57880ad4f2a23.jpg" data-media-id="editor_5" data-image-id="2025012308014_95372c819980513e21490c3abe2aa8e712af6c89c5829e04d5f57880ad4f2a23" data-rendition-name="original" width="2500" height="1000" loading="lazy" alt="What (or who) after the Dalai Lama NT"> <figcaption>THEIR HOLINESSES: The Dalai Lama, who will be 90 in July (left), and China-installed Panchen Lama (above). Traditionally, it is the Panchen Lama who has a role in finding a new Dalai Lama. Photos: TENZIN CHOEJOR (left) / CHINAN NEWS SERVICE (right)</figcaption> </figure>  But China has rarely stuck its neck out for Nepal. Despite repeated requests for military help during its war with the British East India Company in 1814-16, the emperor in Beijing refused.&nbsp; Explains Sudheer Sharma: “China did not want to get involved with the British. They thought of their own national interests then, and they are thinking of their own national interests now with India.” During the Khampa Uprising in the 1960s, Kathmandu was also squeezed between American support for the guerrillas and China’s objections to Nepal being used as a base. But with the Nixon-Mao rapprochement in 1972, the Americans stopped helping the Khampas. Nepal then yielded to pressure from Mao Zedong to mount a military campaign to drive them out.&nbsp; Nepal was left to manage and host Tibetan refugees, and balance that with China’s security concerns. Explains Amish Mulmi: “Nepal has pretty much done everything China has asked to do, including deporting Tibetans. China doesn’t need to be insecure, but Nepal needs to maintain a careful balance.” Today, despite Donald Trump’s chest-thumping and <a href="https://nepalitimes.com/editorial/trump-s-second-coming">threats of a tariff war against Beijing</a>, he and Chinese President Xi Jinping are on the same page regarding democracy and freedoms. Which may mean Washington could once more leave the Tibetans in a lurch, and this could have a direct bearing on the Dalai Lama succession sequence. The United States' shifting foreign policy has often been criticised for leaving allies and partners to fend for themselves. Trump may revive his pressure on Japan, Korea and Taiwan to pay for the US defence umbrella.&nbsp; Nepal’s stance on the Tibetan community relies on marking boundaries and offering protection. During Chinese President Xi Jinping’s visit to Nepal, China proposed that Nepal sign an extradition treaty which Nepal politely refused. “Nepal has tactfully not let the Chinese side extend a longer hand on the Tibetan issue,” says Sharma. “Possibly, we are learning our lessons from history.” The question of who will choose the successor to the Dalai Lama will be decided by geopolitics, and China’s increased stature as a global economic power.&nbsp; Beijing could insist on sticking to tradition to let its candidate for the Panchen Lama make the final decision. This would allow it to move the seat of the Dalai Lama from Dharamshala back to Lhasa. The present Dalai Lama could also appoint his own candidate, but that person will not be allowed into Tibet by China. In that case, we may have a situation where there are two Dalai Lamas.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250127030140_c9048725407641601bc68568db19e48197154cd6396f39d67ab113d94c26e675.jpg" data-media-id="editor_7" data-image-id="20250127030140_c9048725407641601bc68568db19e48197154cd6396f39d67ab113d94c26e675" data-rendition-name="original" width="1910" height="757" loading="lazy" alt="Voice for the Voiceless Dalai Lama"> <figcaption>Dalai Lama's latest book Voice for the Voiceless details his dealings with China over the last seven decades. </figcaption> </figure>

What (or who) after the Dalai Lama?

Between the 1980s and 2000s, over 5,000 <a href="https://download.ssrn.com/11/01/06/ssrn_id1736064_code1383023.pdf?response-content-disposition=inline&amp;X-Amz-Security-Token=IQoJb3JpZ2luX2VjEBkaCXVzLWVhc3QtMSJIMEYCIQCiYUc7BuJ7zaDn%2BOTCFOWBgNKqYarnapqY%2FWZbamFVsgIhAOC%2FPFXHR9Dx6xTicWMj5%2BJXdIEGZ7LxKRyjrCe61Ng9KsYFCPL%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FwEQBBoMMzA4NDc1MzAxMjU3IgzWD1Y1XNz2kaOS3jEqmgX0TbxyBTTrZrpd%2B5N72pFzJAwc%2BxTF8Dc0GnVG2tUGUYyxBt1YmfEqAw5cdOuRCZV23SSKkJwndg9IwI3yrjZGBp9XKxg4lK4Vq0Qy9RMmma5hNCVnA2T0MwGghlnmkgWPZA5ouZPiKFAecf4PE5qml2fu1wj72LEAig5R77cN6nC6%2BxTcygMiuiHrR9yZB4RyvTD9s58avGqUcn9hcIUdku3ydvAGVEgczzgEMCesRMtSgqzHz3E9bju9QLR5RpcDRp0wptfQ89uGXgyBGLCX%2BAl6uareSxQCSaDOthP4PmswWI7y7kBJbQp1pZq8r56Yoa3Qf5WVtmxbsWmDtbOsaSBa0yB6EIS8RKFGeQ%2Bcz%2BnEsOoPHIS%2BqO1k1%2BQuihjN0T66SnWFo8rl8Cv2g4GghY9p9DR3wopBJ6cE%2FtDJMY%2BZ03LkUwS%2Fc7ckyaRpfPX5g6Bb9J56a%2BNA5lnIV5o%2Fpjp%2BZJaVIvEzciyzzTwP58wznmcy3xppvK%2BwXBzBR96cPMXKTdNv9%2FqJ5jlnsgSRJpHWE3UyHbFucwQYXi19i7mCglFSuSkkL5Tg9nQWvXpuP9Z9VmMlQfQ%2F%2FpsfA6KlL81K3UK%2Bp%2FJB2mxQD9SYexZvAf1g21NUSF%2F8I19orsNrT6LutAnoJU%2FOTgO3qMbdgnR%2FuBytI3POnQAEIfbG0Za%2FrEDJ9j8CEbasNXsBMqkx8JKGRG2PUHMRC2xl5Z%2BNIbpsqGB8t%2BvAt40osDpgZStiyeiGdC1nMakUzZtBjWlttzoirCdemwPKJ8M%2BEohj2%2BLEN92yaOKdFewns0gjh%2BUxcotGvBo%2F7QZFappBNjLlR0PyanjcuB4MndEQjeIrd67ntscTKiLDI%2FfzwCHulsl6nbMpewpWFAYwg67guwY6sAGb3VJ2q%2F36hWhrVa8igP2hswnnLlcIU2uhOZa5ge2hCXkUYhL1BcSJfoWy2LwrWCXtdFo%2BT7KMU3p6O3jySdxSop8F4iO%2BJBiXVjSiXm%2FqZo3ri8sVwUgo4ksJI%2BT4AbfK3D3VGYapBgU5LdX%2FjkNwSVoR1vz4vMIyF56i7MKeYG1nFLgc0l9cIjrQI6eY869uIbgZ1XKqqBsuavCbYjSbSy7dMP0QSym%2FgmoWILGE0Q%3D%3D&amp;X-Amz-Algorithm=AWS4-HMAC-SHA256&amp;X-Amz-Date=20250103T172339Z&amp;X-Amz-SignedHeaders=host&amp;X-Amz-Expires=300&amp;X-Amz-Credential=ASIAUPUUPRWE65YAH56X%2F20250103%2Fus-east-1%2Fs3%2Faws4_request&amp;X-Amz-Signature=9b654b526e0779da4fa9f54e2fcde04ac9f7e91fb50d4f8094b1039ebb19e21b&amp;abstractId=1736064">Nepali children were adopted abroad</a>, primarily to the United States, France, and Spain. While international adoption was intended to provide vulnerable children with better opportunities, child trafficking and irregular practices prompted Nepal to suspend adoptions in 2007, and overhaul its policies. By 2010, stricter regulations aligned with the <a href="https://www.hcch.net/en/instruments/conventions/specialised-sections/intercountry-adoption">Hague Adoption Convention</a> drastically reduced adoption numbers. Today, many of these children, now adults, are returning to Nepal in search of their roots, only to encounter a society that no longer recognises them, legally or socially. Behind the statistics lie the <a href="http://hdl.handle.net/1854/LU-01GRNPPXAC1Z3AETV9HARNCG5Q">deeply personal and emotional journey</a> of adoptees returning to reconnect with their past, seek family, and rediscover a sense of belonging. These stories reflect a broader struggle for identity and the complexities of bridging two worlds. Maya Adopted at 9 by a family in Barcelona, Maya carried fragmented memories of her early life in Nepal including the painful recollection of the day her mother and sister vanished, leaving her and her younger siblings behind. She had faint images of her mother, elder sister, and the village where she once lived. In June 2017, Maya came to Nepal accompanied by Chandra Kala and two friends, Jay and Vikram. With only a few photographs of her mother Tulsi, her elder sister Pargati, and her brother-in-law Kamal, along with a street name, Maya arrived in Birendranagar after a 20-hour bus ride from Kathmandu. “Now that we’re close, I feel like I can’t face them,” she confessed to Chandra Kala, wrestling with anxiety about what she might uncover. “I’m nervous. I don’t know if I’ll recognise them or if they’ll recognise me. I don’t know how they’ll react or what they’ll say. And then there’s him [Kamal]. I have such bad memories of him. I don’t know if I can handle this.” Chandra Kala reassured her, reminding her of her courage and the importance of this moment. Maya and her companions asked around the town with little success until a shopkeeper recognised Kamal and directed them to a nearby village. Jay went to confirm and returned excitedly, shouting, “It’s her! It’s your sister!” Maya froze, paralysed by fear and anticipation but she pushed ahead. At the village, Maya’s sister Pargati initially struggled to recognise her. Jay introduced Maya: “Do you recognise her? This is your younger sister. She’s come all the way from Spain to find you.” Slowly, realisation dawned, and the two women embraced, bridging the decades of separation with tears and disbelief. The next day, Maya met her mother Tulsi in an emotionally overwhelming reunion. Tulsi rushed into the room and embraced Maya tightly, sobbing uncontrollably: “Mero chhora-chhori, gaye, gaye… my children they went, they went …” Once the tears subsided, Tulsi and Pargati began recounting the heartbreaking circumstances of their separation. After the death of her husband, Tulsi faced relentless judgment in their village when Kamal stayed with the family before his marriage to Pargati. The villagers accused Tulsi of impropriety, calling her पापी (sinful) and demanded that the family leave. “We didn’t want to leave, but the village didn’t want us here,” explained Pargati. “We left intending to bring you and your siblings later. But when we returned, you were gone.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250103120140_da7482d222e0a03b783c5e1df25536ed416d7b7475442e7fd40e54451572142e.jpg" data-media-id="editor_3" data-image-id="20250103120140_da7482d222e0a03b783c5e1df25536ed416d7b7475442e7fd40e54451572142e" data-rendition-name="original" width="384" height="512" loading="lazy" alt="Searching for a homeland away from home NT"> <figcaption>An adoptee and companion return to Bal Mandir in Kathmandu after 19 years. Photo: CHANDRA KALA CLEMENTE-MARTINEZ</figcaption> </figure>  Tulsi recalled how she had entrusted Maya and her siblings to relatives, hoping they would be cared for temporarily. However, when she returned, the children had been sent away without her knowledge. “I only trusted them because I had no other choice,” Tulsi said through tears. “I didn’t know they would send my children away. What kind of mother does that make me? They called me a bad mother, but what else could I have done?” The reunion brought healing and answers but it also exposed the societal pressures that had fractured Maya’s family. Despite the challenges, Maya spent the rest of her visit bonding with her sister, nieces, and younger half-sister, Sunita, slowly bridging the gaps created by time and distance. Maya’s journey was a testament to the courage required to confront the past, the pain of uncovering difficult truths, and the hope of rebuilding connections once lost. Her story highlights the enduring emotional complexity faced by adoptees navigating their history and identity. Ashmita Unlike some adoptees whose main focus is reuniting with their biological family, 26-year-old Ashmita’s priority has been to uncover the institutional details surrounding her adoption. She wanted to understand what the orphanage and the government knew about her background and why so much information seemed concealed. “I just want to know where I come from,” she said. “Even if I never find my biological family, having a better sense of the places and people connected to my story would mean so much.” For many adoptees, returning to Nepal is not just about reconnecting emotionally, it is about seeking formal recognition as members of the Nepali community. However, the legal framework in Nepal often fails to acknowledge their unique status.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250103120144_bf0158b7829cf5db44382d7386d3b123032adad3f9e10e28096b80cd09170ba6.jpg" data-media-id="editor_4" data-image-id="20250103120144_bf0158b7829cf5db44382d7386d3b123032adad3f9e10e28096b80cd09170ba6" data-rendition-name="original" width="384" height="512" loading="lazy" alt="Searching for a homeland away from home NT"> <figcaption>A mother reunites with her don after 18 years. Photo: CHANDRA KALA CLEMENTE-MARTINEZ</figcaption> </figure>  In Nepali law, adoptees are left in limbo: their birth parents are not considered legal parents, and their ties to the country are effectively erased upon adoption. This lack of recognition creates significant hurdles, particularly in two key areas: accessing pre-adoption records and obtaining Non-Resident Nepali (NRN) status. Despite international norms like the Convention on the Rights of the Child, which guarantees the right to know one’s origins, institutions often refuse to cooperate. Orphanages and non-profits in Nepal, which hold critical pre-adoption records such as birth certificates and citizenship documents, frequently withhold this information, reflecting the systemic reluctance to provide transparency. In numerous cases, records that should include family names, addresses, or relinquishment agreements were either incomplete or falsified. These practices not only prevent adoptees from reclaiming their histories but also perpetuate their disconnection from their heritage. Ashmita’s initial requests for information from her adoption agency were met with delays and incomplete responses. When she turned to the orphanage where she spent her early years, she encountered even greater resistance. At one point, the director of the orphanage issued veiled threats. Nevertheless, Ashmita persisted and managed to find the name of the individual who had brought her to the orphanage. However, the person had disappeared, leaving yet another gap in her story. A breakthrough came when Ashmita accessed a police report that suggested she might have been born in a different municipality than the one in her adoption records, prompting her to seek help from local authorities. The police took an interest in her case and began investigating possible connections to her birth family. While progress was slow, they meticulously followed leads to help her trace her origins. “It’s not easy,” Ashmita said of the process. “But every small step feels like I’m piecing something back together.” She also noted that societal perceptions could add to the difficulty. At times, she felt questioned about her identity and her right to seek answers. “People have asked me why I care so much or even suggested that I’m not Nepali anymore because I was adopted abroad,” she reflected. Ashmita’s story is a complex account of persistence in the face of institutional and personal challenges. While her search has not yet provided all the answers she seeks, it continues to offer her insights into her early life and the systems that shaped her adoption journey. &nbsp;“These records are sealed for a reason. They are not meant to be reopened,” said a government official. Even an NGO representative said: “It’s better for everyone if the past remains in the past.” An orphanage director asked: “Why are you asking these questions? This is not your place anymore.” Hari Prasad Sacré The Non-Resident Nepali (NRN) card is a lifeline for Nepali diaspora members, granting them residency and property rights in Nepal. Yet, adoptees are notably excluded from this framework. While the law stipulates eligibility for individuals whose parents or grandparents were Nepali citizens, it makes no provision for adoptees whose legal ties to their Nepali parents were severed by adoption. When Hari Prasad Sacré, a Nepali adoptee, sought to obtain an NRN card at the Nepal Embassy in Belgium, he encountered officials unfamiliar with processing an NRN request from an adoptee. His case was the first of its kind, setting a precedent but also highlighting the systemic barriers adoptees face. "You are not eligible; your surname is Sacré, it is not a Nepali name," an embassy staff said.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250103120140_9bdc24b7e34930059f895048ab7dc0ad3ca23b16907c572f01a8d5404a5feac5.jpg" data-media-id="editor_5" data-image-id="20250103120140_9bdc24b7e34930059f895048ab7dc0ad3ca23b16907c572f01a8d5404a5feac5" data-rendition-name="original" width="446" height="512" loading="lazy" alt="Searching for a homeland away from home NT"> <figcaption>Hari Prasad Sacré receives tika from his father Khul Prasad Adhikari during Dasain, a few weeks after receiving his NRN card. Photo: HARI PRASAD SACRÉ</figcaption> </figure>  Sacré’s situation was legally ambiguous. Although his biological parents, including his father, Khul Prasad Adhikari, are alive and he maintains contact with them, he no longer had “legal” ties to Nepal due to the adoption process. Carrying a Belgian surname the embassy staff was initially convinced the adoptee couldn’t claim Nepali origin. Nepali law, which does not recognise biological parents as legal guardians once a child is adopted, created complications for the NRN application. To navigate this complexity, Sacré relied on a testimony from his father. Issued by a local government body in Kaski, the testimony affirmed that Hari had been put up for adoption and was of Nepali origin. While this enabled the embassy to approve his NRN card, the process was unnecessarily protracted and emotionally charged, highlighting the inadequacy of current policies to accommodate the unique situations of adoptees. Sacré’s case represents a rare instance where biological parents were alive and willing to provide testimony, but many adoptees are not as fortunate. A large number of adoptees were declared “orphans” during the adoption process, even when their parents were alive. This severed their legal ties to Nepal, stripping them of documentation that could later prove their origin. For others, the absence of living biological relatives or access to their original adoption records creates insurmountable barriers. Without clear documentation or a family member to vouch for their Nepali heritage, adoptees are excluded from the NRN framework. This denies them the rights and privileges afforded by the card, including property rights, legal recognition, and a formal connection to their homeland. Current laws fail to account for the complexities of adoptees’ legal status, leaving them disconnected from their cultural and legal heritage. Adoption papers, as evidence of Nepali descent, should be accepted as proof, granting adoptees rightful access to the NRN card and ensuring their inclusion in Nepal’s diaspora. Such reforms are crucial to ensure that all adoptees, regardless of their circumstances, can reclaim their heritage and establish a sense of belonging in Nepali society. Without these changes, the systemic exclusion of adoptees will persist, perpetuating inequities and denying them the opportunity to step up as active members of the Nepali diaspora. Sacré’s case serves as both a precedent and a call to action. It exemplifies the challenges and triumphs of adoptees navigating complex bureaucracies and advocates for a more inclusive and equitable approach to reconnecting adoptees with their homeland. Nepal can draw inspiration from South Korea, where the government has actively supported the reintegration of adoptees into their society. The F4 visa, established through efforts by organisations like the Global Overseas Adoptees’ Link (GOA'L), grants adoptees the right to live and work in Korea, while dual citizenship acknowledges their dual identity as members of the diaspora and their country of origin. GOA’L further fosters reconnection by offering language classes and cultural exchange programs, creating opportunities for meaningful reintegration and belonging. As Nepal refines its NRN citizenship framework, explicitly including adoptees could address the severance of legal and cultural ties caused by international adoption. Such inclusion would provide adoptees a pathway to residency, citizenship, and rights, enabling them to reconnect with their heritage. Complementing this with programs for language acquisition, cultural immersion, and historical education would honour Nepal’s responsibility to the approximately 5,000 children sent abroad. Nepal could establish a dedicated organisation similar to South Korea’s GOA’L and help adoptees access pre-adoption records, navigate legal processes, and engage in cultural exchange initiatives. It would also serve as a bridge between adoptees and Nepali society, fostering mutual understanding and collaboration. This article is based on doctoral studies by <a href="http://hdl.handle.net/1854/LU-01H4Z85GPS63ZWDJ3WB2E6KS70">Hari Prasad Sacré</a> and <a href="https://www.tandfonline.com/doi/full/10.1080/10357823.2022.2142932">Chandra Kala Clemente-Martínez</a>. Hari Prasad Sacré, PhD, is a postdoctoral researcher at Ghent University in Belgium, specialising in cultural translation, multilingualism, and identity in education. His PhD, Reading Illiteracy, explored fractured multilingualism and illiteracy in displaced identities such as adoptees, with work published in leading journals like Critical Arts and the European Journal for Cultural Studies. Chandra Kala Clemente-Martínez, PhD, is a postdoctoral researcher at the AFIN Research Group, Autonomous University of Barcelona, with a PhD in Social Anthropology. Her research focuses on family strategies, reproductive decisions, and adoption, with extensive fieldwork in Spain and Nepal examining adoptee reunions and related governance and rights.