Photo Credit, MoHA
A minister from the government led by Prime Minister Balendra Shah expressed interest in repatriating funds suspected to have been amassed through corruption in Nepal and hidden in Swiss banks, sparking renewed discussions on this topic.
Reports about substantial sums held in Swiss banks under Nepali names occasionally surface in media, with widespread speculation that these funds may be proceeds of corruption.
Some experts suggest that while such funds may exist, much of the relevant information rests with Swiss authorities, making the process of recovering these assets difficult. Conversely, others believe that with sufficient political will, repatriation could be achievable.
On Wednesday, Home Minister Sudhan Gurung requested collaboration from the Swiss Ambassador to Nepal for investigations related to this issue. According to his secretariat, Gurung urged Swiss Ambassador Daniel Muehlebach to initiate efforts to retrieve any funds determined to have been amassed illegally.
Experts note that since the 1990 People’s Movement of Nepal (BS 2046), there have been ongoing discussions about Nepali funds in Swiss banks, but substantial investigations or punitive actions remain limited.
In 2019, investigative journalism center ‘Khopke Nepal’ reignited the debate by publishing a detailed report citing Nepali money in Swiss banks.
“It is a popular claim, especially as expressed by the minister, but practically it is neither simple nor necessarily feasible,” commented Shiv Gaule, editor of Khopke Nepal at the time of the report’s publication.
Bimal Wagle, a former Nepal government secretary and commentator on governance, states that the success in recovering such assets depends greatly on the seriousness of the government’s efforts.
“The public places great expectations on this government, and this issue is undoubtedly among them. If approached earnestly, given Nepal’s status as a party to multiple international conventions, investigations and enforcement could be facilitated in certain cases.”
Are There Nepali Funds in Swiss Banks?
Although opinions vary on the likelihood of repatriating money from Swiss banks, several knowledgeable sources interviewed concur that there is substantial indication that Nepali funds are held there.
Journalist Shiv Gaule notes that Khopke’s research disclosed significant amounts deposited in Swiss banks by Nepalis.
The 2019 report revealed that Nepali nationals held approximately NPR 3.584 billion in Swiss banks.
“The research established that Nepali money does exist in Swiss banks,” he stated. “Interestingly, the deposits increased during Nepal’s Maoist insurgency period, specifically from 1995 to 2007 (BS 2052 to 2064).”
Hari Bahadur Thapa, a writer and journalist who has commented on governance, recalls that this issue has been raised since the 1990 People’s Movement.
“Initially, documents circulated about amounts held by individuals such as Pamphadevi Thakurani during the 1990 uprisings, with speculation that these belonged to the then Queen Aishwarya. Newspapers covered these topics, followed by major investigative reports by Khopke,” he said.
However, a recent Nepal Trust report notes that attempts to trace foreign assets of the ex-King Birendra and his family have not uncovered any movable or immovable property to date.
“Further investigation is costly and budget constraints have hindered progress,” reads a 2024 BS (1967 AD) asset documentation archive.
Narbahadur Thapa, former executive director of Nepal Rastra Bank, comments that in countries with poor governance and corruption, rulers often embezzle public funds and stash or invest them abroad — a perception prevalent among the public as well.
“In Nepal too, the narrative that Rana rulers, kings, and others kept such funds overseas is widespread, fueled further by tax evasion and hawala transactions,” he adds.
Officials from the Commission for the Investigation of Abuse of Authority (CIAA) acknowledge indications of corrupt funds being transferred abroad but say they are unaware of any confirmed deposits in Swiss banks.
“Based on the information we have, it is not yet confirmed whether the funds are in Swiss banks or not,” said CIAA deputy spokesperson Ganesh Bahadur Adhikari.
Investigation
Writer and journalist Hari Bahadur Thapa notes that although this matter has resurfaced intermittently, investigations remain weak.
“Proper investigative measures have not been undertaken,” he remarked.
Journalist Shiv Gaule shared his experience that Swiss banks sometimes provide certain information.
“Other stakeholders should assist as the Home Minister requested the Swiss ambassador; this is not a secret matter. Banks may provide limited information upon government request,” he explained.
“Basic data like account amounts can be disclosed, but specific details such as account holders’ names are not shared.”
Former Nepal Rastra Bank official Thapa recalls that earlier attempts to repatriate funds were discussed but did not materialize.
“Thorough investigations rarely happen in Nepal on such issues. Even when they do, prosecutions seldom follow and there is no history of reaching logical conclusions,” he stated.
Former secretary Wagle avoids comparing the Balendra government’s efforts with past attempts.
“The question is whom the expectations are directed at and whether those expectations are realistic. This government bears many expectations,” he emphasizes.
How Feasible Is It to Repatriate the Funds?
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Former Secretary Wagle underscores that whether the government succeeds will depend on its next steps.
“Many countries are signatories to the United Nations Convention Against Corruption, which legally obliges them to act, potentially influencing progress,” he said.
According to Journalist Shiv Gaule, multiple factors complicate recovery efforts.
“Studies on money laundering and investigative networks like the International Consortium of Investigative Journalists (ICIJ) classify Switzerland as a tax haven. Consequently, any decision to return such funds depends heavily on Swiss political will and legal frameworks,” he explains.
Another journalist, Thapa, highlights precedents from other countries that demonstrate repatriation is possible given sufficient determination.
“With some proactive efforts and mutual legal assistance agreements, it is achievable. The Philippines has initiated campaigns to retrieve embezzled funds, and Swiss banks have returned assets linked to Nigeria’s former President Sani Abacha,” he mentions.
CIAA officials point out that absence of legal assistance treaties with relevant countries complicates the process of prosecuting cases involving offshore accounts.
“We have informed the government about the significant challenges in asset recovery, and Chief Commissioner Prem Kumar Rai has also raised this issue in parliament,” said CIAA Deputy Spokesperson Adhikari.
