KATHMANDU: The Department of Tourism has issued a comprehensive guideline requiring casinos to screen customers daily against international and domestic terrorism-related sanctions lists and immediately freeze assets of designated individuals.

The Guideline on Targeted Financial Sanctions for Casinos mandates compliance with United Nations Security Council resolutions and Nepal's domestic terrorism list. Casinos, classified as Designated Non-Financial Businesses and Professionals, must now implement extensive monitoring and reporting procedures to prevent money laundering, terrorist financing and weapons proliferation financing.

Under the directive, casinos must conduct daily checks, manually or through automated systems, against both the UN Consolidated Sanctions List and Nepal's Domestic Terrorist List. Screening applies to all customers before establishing business relationships, existing customer databases, beneficial owners, directors and agents acting on behalf of clients, and all parties to financial transactions.

Upon confirming a match between a customer and a designated individual or entity, casinos must immediately freeze all related funds without prior notice. This includes assets owned or controlled directly or indirectly by the designated person, funds derived from such assets, and funds held by individuals or groups acting on behalf of the designated person. Casinos are prohibited from providing any financial or related services to sanctioned individuals.

Casinos must report any freezing action or attempted transaction involving a designated person to the Department of Tourism within three days.

Violations carry significant penalties. Under the Asset (Money) Laundering Prevention Act, casinos may face fines ranging from NPR 1 million to NPR 50 million, while other businesses in this category face fines from NPR 100,000 to NPR 10 million. DoT has the authority to supervise oversight and enforce compliance.

Designated individuals may apply to the Ministry of Home Affairs for limited access to frozen funds for essential needs such as food, housing, healthcare, education and legal expenses. Freezing measures may be lifted if an individual is removed from the sanctions list or if an inquiry confirms the match was a false positive.

The guideline derives authority from the Asset (Money) Laundering Prevention Act 2008, the Tourism Act 2035 and related regulations amended in 2024 and 2025.

The government's aim is that the guideline will serve as a crucial step in aligning Nepal’s casino industry with global anti-money laundering and counterterrorism financing standards.