NEPAL: 2009 COUNTRY REPORT ON TERRORISM

UNCLAS KATHMANDU 001162 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: KDEM PGOV PHUM NP SUBJECT: NEPAL: 2009 COUNTRY REPORT ON TERRORISM General Assessment -------------- ¶1. (U) While Nepal experienced no significant acts of international terrorism, several incidents of politically-motivated violence occurred across the country. Maoist-affiliated Young Communist League (YCL) criminal activity continued, including intimidation and extortion. In response to continued violence by the YCL, other political parties condoned the use of violence from their youth wings. Unrest in the southern Terai plains remained high with the proliferation of numerous armed groups and an inadequate police presence. A Special Security Plan (SSP) was put in place in July to curb violence and end the culture of impunity. Despite this program, police still do not have an active presence in many parts of the Terai. Nepal experienced several acts of religiously-motivated domestic violence, most prominently the bombing of a Catholic Church in May. The attack was conducted by the Hindu extremist group the Nepalese Defense Army (NDA),the same group responsible for the shooting of a Catholic priest and the bombing of a mosque in 2008. The leader of this group has since been arrested and their activities appear to have ceased. Safe Haven Assessment -------------- ¶2. (U) There were no indications that Nepal was a safe haven for international terrorists; however, given Nepal's continued instability there is a possibility of travel through Nepal into other areas in the region by extremist groups, especially into India. The large ungoverned space along the Nepal/Indian border only exacerbates this situation, as do security shortfalls at Tribhuvan Airport, Nepal's international airport. In June, Lashkar-e Tayyiba (LeT) member Muhammad Omar Madni traveled through Nepal enroute to New Delhi. Illicit Means of Funding -------------- ¶3. (U) Nepal is not a regional financial center and there are no indications that the country is used as an international money laundering center. In January 2008, the Government of Nepal for the first time passed legislation on anti-money laundering. There were no prosecutions or arrests for money laundering during 2008 or 2009. However, YCL illicit financial activities, ranging from smuggling, extortion, and protection demands, increased in 2009. An independent Financial Information Unit (FIU) was established within the Nepal Rastra Bank (NRB) in 2008 and has authorization to investigate money laundering and terrorist financing, previously the responsibility of several government bodies. Ethnic Unrest in the Terai -------------- ¶4. (U) Militants continued to exacerbate unrest in the southern Terai plains. There are estimated to be over 100 armed groups operating in the Terai - some in pursuit of independence or autonomy, most composed of opportunistic criminal elements. Competing factions clashed with each other, with the Maoists, with hill-origin Nepalese, and with police, instigating numerous strikes, demonstrations, and Indo-Nepal border road closures. U.S.-Nepal Cooperation -------------- ¶5. (U) The United States sponsored the attendance of Nepalese security force officers at various international counterterrorism events. ¶6. Post point of contact is Political/Economic Officer Charles Fouts (foutsck@state.gov). BERRY