Business Corruption in Nepal
Pervasive political corruption constitutes a major challenge for foreign companies in Nepal. Kickbacks and facilitation payments are widespread in Nepal's public procurement and in the process of business registration. Corruption reduces competitiveness and significantly increases the costs of starting up a business in Nepal in comparison to the rest of the South Asian region. The court system is plagued by corruption, contributing to an inefficient dispute settlement mechanism. The Prevention of Corruption Act, 2059 (2002 A.D) is the principle anti-corruption legislation and criminalises corruption, bribery, money laundering, abuse of office and facilitation payments in the public and private sectors. However, implementation and enforcement of Nepal's anti-corruption legislation is inadequate, leaving the level of corruption in the country unchanged.
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