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Nepal’s former finance minister arrested for money laundering, police say

By Thomson Reuters Jun 23, 2026 | 2:28 AM

By Gopal Sharma

KATHMANDU, June 23 (Reuters) – Nepal’s former finance minister Bishnu Prasad Paudel was arrested late on Monday on ​charges of money laundering, police said, ‌as the country’s Gen Z-backed government steps up a crackdown on alleged corruption under previous administrations.

Paudel, 66, a senior leader of the Communist Party of ‌Nepal (UML) ​and a key figure ⁠in the former K.P. ⁠Sharma Oli government, was detained from a hotel in western Nepal, police said.

Police spokesperson Abi Narayan Kafle said Paudel was ​being brought to Kathmandu and would be handed over to the Department of Money ⁠Laundering Investigation.

His arrest comes ⁠months after Oli’s government was ​toppled following deadly anti-graft protests in which at ​least 76 people were killed and more ‌than 2,500 injured, with several government buildings, including parliament, set ablaze.

Oli and his home minister were arrested for failing to prevent ⁠the violence. Both are now out on bail.

Prime Minister Balendra Shah, a 36-year-old rapper-turned-politician who took ⁠office in ‌March after a landslide mandate promising ⁠to tackle corruption, has pledged ​action ‌against past abuses.

Paudel could not be ​reached ⁠for comment. A UML official said senior party leaders would meet on Tuesday to discuss the development.

Paudel has held multiple ministerial posts across successive governments.

(Reporting by Gopal Sharma; Editing by ​Raju Gopalakrishnan)