Former Nepal Finance Minister Arrested in Money-Laundering Graft Probe

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KATHMANDU: Nepal police arrested former finance minister Bishnu Paudel on Monday in connection with a money-laundering case. Paudel, a senior official of the Communist CPN-UML party, is the latest figure targeted during Prime Minister Balendra Shah’s anti-corruption crackdown.

The department is currently investigating his alleged involvement in money laundering. This development follows the 2025 anti-corruption protests that led to the collapse of the previous government.

Former prime minister KP Sharma Oli, who lost his seat to Shah, denounced the arrest as a ‘political stunt’ and accused the government of authoritarianism.

Meanwhile, the government is separately pursuing a $66 million procurement scam involving e-passports. These events unfold against a backdrop of past civil unrest, where 2025 demonstrations over corruption and economic instability resulted in 76 deaths. Tensions remain high as officials continue their investigations into senior-level government graft.