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Nepal Arrests Former Finance Minister in Money Laundering Probe

Nepal's former finance minister Bishnu Prasad Paudel has been arrested on money laundering charges, marking the latest move in the country's widening anti-corruption crackdown under Prime Minister Balendra Shah.
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Nepal’s former finance minister, Bishnu Prasad Paudel, was arrested late on Monday on money laundering charges, as the country’s Gen Z-backed government intensified its anti-corruption campaign targeting figures linked to previous administrations.

Paudel, 66, a senior leader of the Communist Party of Nepal (Unified Marxist–Leninist) and a key member of former Prime Minister K. P. Sharma Oli’s government, was detained from a hotel in western Nepal, police said.

Taken to Kathmandu for Investigation

Police spokesperson Abi Narayan Kafle said Paudel was being transported to Kathmandu, where he would be handed over to the Department of Money Laundering Investigation for further proceedings.

Authorities have not yet disclosed additional details regarding the allegations.

Arrest Follows Political Upheaval

The arrest comes months after the government of K.P. Sharma Oli collapsed following deadly anti-corruption protests that swept across Nepal.

The unrest left at least 76 people dead and more than 2,500 injured, while several government buildings, including the parliament complex, were set on fire.

Oli and his home minister were subsequently arrested over allegations that they failed to prevent the violence, though both were later released on bail.

Shah Government Expands Anti-Corruption Drive

Prime Minister Balendra Shah, a 36-year-old rapper-turned-politician who came to power in March on a promise to tackle corruption and political misconduct, has repeatedly vowed to investigate alleged abuses under previous governments.

Paudel is one of the most senior political figures to face legal action since Shah’s administration launched its anti-graft campaign.

UML Leadership to Meet

Paudel could not immediately be reached for comment. A UML party official said senior leaders would meet on Tuesday to discuss the arrest and determine the party’s response.

Over the years, Paudel has held several key ministerial portfolios and has been a prominent figure in Nepal’s political establishment.

(with inputs from Reuters)