Country Reports on Terrorism 2012

On April 30, an IED attack in Janakpur targeted participants at a sit-in protest demanding
representation in negotiations over a new federal constitution. The blast killed four and
injured two dozen others. The Janatantrik Tarai Mukti Morcha claimed responsibility for
the bombing.
Legislation, Law Enforcement, and Border Security: Other than the ULEFN suspects,
described above, there were no arrests or prosecutions of known terrorists in 2012. An open
border with India, relatively weak airport security, and rampant corruption remained deterrents to
more effective counterterrorism policing. The United States sponsored or hosted capacitybuilding
programs for Nepali security forces, including 14 training courses to Nepali law
enforcement, through the Department of State’s Antiterrorism Assistance program.
Countering Terrorist Finance: Nepal is a member of the Asia/Pacific Group (APG) on Money
Laundering, a Financial Action Task Force (FATF)-style regional body. Nepal has taken a
number of steps toward compliance with the requirements of APG. In June, the government
passed ordinances on Mutual Legal Assistance and Extradition, as required by the FATF, but did
not pass legislation covering organized crime. The FATF has also recommended that Nepal
amend its Anti-Money Laundering Act, and a draft was reportedly being finalized at year’s
end. A group of government finance experts has been working to finish draft legislation that
would replace the 2008 Assets Laundering Protection Act. Nepal did not prosecute any terrorist
financing cases in 2012.
The Government of Nepal implemented UNSCRs 1267/1989, 1988, and 1373 through Nepal
Rastra Bank (NRB)-issued directives to the banking and financial sector. The NRB licenses and
monitors money and business services that receive remittances. The Financial Regulation
Control Act allows only banks and financial institutions (BFI) registered with the NRB to engage
in receiving foreign currency transfers (and only banks are allowed to open letters of credit to
remit currency overseas). Any transactions by unauthorized BFIs to transfer or receive money
(such as hundi or hawala) are considered a criminal money laundering offense, but it is difficult
for the government to investigate these informal money transfer systems.
Non-profit organizations are not covered by NRB Financial Information Unit directives, unless
they are involved in money laundering or terrorist financing. The Government of Nepal approved
a National Strategy and Action Plan for anti-money laundering/combating the financing of
terrorism and was working on new laws and supervisory systems to cover non-profit
organizations and other non-financial actors gradually. It may take two to three years before
nonprofit organizations will be fully covered and monitored.
For further information on money laundering and financial crimes, we refer you to the 2013
International Narcotics Control Strategy Report (INCSR), Volume 2, Money Laundering and
Financial Crimes: http://www.state.gov/j/inl/rls/nrcrpt/index.htm.
PAKISTAN
Overview: In 2012, Pakistan remained an important partner in counterterrorism efforts against
al-Qa’ida (AQ). Pakistan also undertook operations against terrorist groups that carried out
attacks within Pakistan, such as the Tehrik-e Taliban Pakistan (TTP or Pakistani Taliban).
Pakistan did not take significant action against some other violent extremist groups, including
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