ICAN and CIB Sign MoU to Combat Institutional Financial Crimes
5th November 2025, Kathmandu
The landscape of economic governance in Nepal has been significantly bolstered following the signing of a landmark Memorandum of Understanding (MoU) between The Institute of Chartered Accountants of Nepal (ICAN) and the Central Investigation Bureau (CIB) of Nepal Police.
ICAN and CIB Partnership
This strategic partnership represents a crucial step in the nation’s fight against the rapidly growing threat of institutional financial crimes, uniting the pinnacle of financial expertise with the nation’s top investigative arm.
Signed by ICAN President CA Nil Bahadur Saru Magar and CIB Chief, Additional Inspector General of Police Dr. Manoj Kumar KC, the agreement creates an official, collaborative framework designed to enhance the investigation, control, and prevention of complex economic crimes. This move is a direct response to the acknowledged surge in financial misconduct across the country, aiming to bring greater transparency and accountability to the financial and auditing sectors. The fusion of ICAN’s specialized accounting and auditing knowledge with CIB’s criminal investigation authority promises a more robust mechanism for protecting public trust and national economic stability.
Bridging the Gap: The Synergy of Expertise and Enforcement
At its core, the MoU is a strategic initiative for capacity building and knowledge exchange. Financial crimes today, such as embezzlement, money laundering, and complex corporate fraud, often leave trails buried deep within sophisticated financial records that require specialized forensic skills to uncover. This is where the partnership’s immediate value lies:
Technical and Expert Support: ICAN is committed to providing technical and expert support to CIB during financial crime investigations. Chartered Accountants, with their deep understanding of financial statements, tax laws, and auditing standards, can offer invaluable assistance in unraveling convoluted financial schemes, interpreting documents, and presenting evidence in a court-ready format. This injection of technical acumen will significantly enhance the speed and effectiveness of CIB’s investigations into financial irregularities.
Training and Specialization in Forensic Accounting: A key pillar of the agreement allows CIB staff to participate in ICAN’s highly sought-after Forensic Accounting and Fraud Detection (FAFD) certification courses. This is an essential step in modernizing the skills of Nepal Police investigators. Forensic accounting is the application of investigative and analytical skills to financial matters for the purpose of resolving legal disputes. By training their personnel in FAFD, the CIB will cultivate an internal cadre of specialists capable of proactively identifying and thoroughly investigating fraudulent financial activities, moving beyond traditional policing methods.
This unique combination of ICAN’s regulatory authority and technical knowledge, with CIB’s enforcement power, establishes a formidable deterrent against unethical actors.
Curbing Misconduct and Upholding Professional Standards
Beyond collaboration on external financial crimes, the MoU also targets internal disciplinary issues within the auditing profession itself. This serves to regulate and safeguard the integrity of the profession under the Nepal Chartered Accountants Act, 2053.
Regulatory Coordination: The agreement mandates that both institutions will coordinate on investigations and disciplinary actions whenever complaints are filed against ICAN members involving accounting or auditing misconduct. This inter-agency consultation ensures that any action taken is legally sound and adheres to established professional standards and ethics. It streamlines the process of prosecuting professionals involved in fraud, thereby protecting the interests of the vast majority of ethical ICAN members.
Action Against Fake Auditors: The collaboration also includes cooperation in taking decisive action against fake auditors. Unauthorized audit practices not only undermine the quality of financial reporting but also increase the vulnerability of businesses and the public to fraud. By working with CIB, ICAN can more effectively exercise its regulatory oversight, ensuring that only certified and ethical professionals are authorized to conduct audits in Nepal.
Promoting Transparency and Public Awareness
The long-term goal of the partnership is not just punitive, but preventative. Both institutions have agreed to actively raise public awareness on financial fraud and economic crimes. A more informed public is the first line of defense against financial scams and fraudulent investment schemes. By coordinating awareness campaigns, ICAN and CIB can educate individuals and businesses on best practices, red flags of fraud, and legal recourse, contributing to a culture of greater financial literacy and transparency nationwide.
The leaders from both ICAN and CIB have confidently stated that this partnership will play a crucial role in strengthening investigation capabilities, curbing unauthorized audit practices, and promoting a stronger, more transparent financial ecosystem in Nepal. The effective implementation of this MoU is anticipated to lead to a significant decline in financial malpractices, restoring public confidence in both the financial sector and the regulatory bodies tasked with its oversight. It marks a clear commitment by key national institutions to hold the line against corruption and drive economic development built on integrity.
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