Kathmandu, Feb 18 (NationPress) India and Nepal have formalized an updated Agreement on Mutual Legal Assistance in Criminal Matters in Kathmandu, which will empower the relevant authorities of both nations to collaborate effectively in criminal investigations and legal processes.

After extensive negotiations, this agreement — initially established during a home secretary-level meeting in New Delhi in July of the previous year — was signed on Tuesday, reinforcing their commitment to combat both financial and non-financial crimes, including terrorism.

Binod Kumar Bhattarai, Joint Secretary at Nepal's Ministry of Law, Justice and Parliamentary Affairs, and Naveen Srivastava, Indian Ambassador to Nepal, endorsed the document in the presence of Law Minister Anil Kumar Sinha and other senior officials from various ministries, as stated by the law ministry.

The ministry highlighted that this agreement will establish a formal legal framework, facilitating cooperation between the relevant authorities of both nations in areas such as evidence collection and exchange during investigations, prosecutions, and judicial proceedings of criminal cases.

Moreover, the agreement is anticipated to substantially contribute to fortifying the rule of law and improving institutional coordination in justice administration.

According to the ministry, with the implementation of this agreement, cooperation between central authorities is expected to become more robust and results-driven.

It is seen as a pivotal step in diminishing financial crimes in Nepal, enhancing the efficacy of investigations, prosecutions, and adjudications.

The ministry also noted that the agreement will facilitate mutual evaluations concerning the prevention of money laundering and financing of terrorist activities.

Officials in Kathmandu are optimistic that this partnership with India will aid Nepal in being removed from the grey list by the Financial Action Task Force (FATF), the global body focusing on anti-money laundering.

Nepal found itself re-listed on the FATF grey list in February last year after being removed in 2014.

Recently, Nepal has enacted several regulations aimed at restricting terrorists from gaining access to financial resources.

In 2019, Nepal had also signed a mutual legal assistance agreement with China during President Xi Jinping's visit to the Himalayan country.

This agreement will come into effect once both parties communicate through diplomatic channels.

Both nations are set to create a formal mechanism to streamline cooperation in criminal investigations, prosecutions, and judicial proceedings, according to Nepali officials.

However, the signing of an extradition treaty remains pending, with ongoing discussions regarding the extradition of third-country nationals.