Counter international terrorism and latest trends in Nepal

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Counter International Terrorism
(JFY 2014)
Country Report
(Nepal)
Presented by:
Dipendra Shah
(Deputy Superintendent of Police)
Special Bureau, Nepal Police

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Country Report: Nepal
(On Terrorism)
A. Brief Introduction to Nepal:
The history of Nepal is characterized by its isolated position in the Himalayas and its two
dominant neighbors, India and China. Due to the arrival of disparate settler groups from outside
through the ages, it is now a multi-ethnic, multi-cultural, multi-lingual country. Its population is
predominantly Hindu with significant presence of Buddhists. Nepal has an area of 147,181
square kilometers (56,827 sq mi) and a population of approximately 27 million. The national
language is Nepali. Nepal has a typical monsoonal two-season year. The dry season start from
October and lasts till May and the wet season, the monsoon, from June till September.
Nepal experienced a failed struggle for democracy in the 20th century. During the 1990s and
until 2008, the country was in civil strife. Nepal suffered from a decade long Maoist insurgency
throughout the country which was brought to the end by the Comprehensive Peace Agreement
(CPA) in 2006 between the government of Nepal and the rebels.
When the parliament was reinstated with the participation of the rebels in the mainstream
politics, the Interim Constitution of Nepal, 2007 abolished the more than two centuries old
constitutional monarchy and declared the country as a Federal, Democratic Republican country.
Constituent Assembly elections were held in 2008 but the first Constituent Assembly failed to
draft a new constitution for the country because of highly polarized politics and incompatible
demands of various ethnic groups. The second Constituent Assembly elections were held at the
end of 2013 and the country still awaits its first constitution drafted by the Constituent Assembly.
B. The responsible Organization in countering terrorism in Nepal:
Special Bureau, Nepal Police
1. Organizational Chart of Nepal Police:

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C. Outline of Nepal Police:
Nepal Police is one of the four security organizations (Nepal Army, Nepal Police, Armed Police
Force and National Investigation Department) of Nepal. Nepal army is under the Ministry of
Defense rests of the three organizations are under the Ministry of Home Affairs. Nepal Police is
the civil police of the country primarily responsible for crime control and investigation.
The Police institution dates back to the ancient times as does the history and language of Nepal.
During The Rana Regime (1864-1951 AD), the Police organization was conceived and gradual
progression took place towards modern police. During that time, the role of Police was focused
mainly in safeguarding the interest of the ruling system. After the fall of the Rana regime in 1951
and emergence of democracy in the country, police headquarters was established in Kathmandu
in 1952 and Nepal police stepped into its modern era through the enactment of the Police Act in
1956. The Peoples’ democratic movement of 1990 reinstated the multi-party democratic system.
The Police Reform Commission was constituted in the year 1992 and modernization of the
Police organization started to tune with the aspirations of the people and norms of Multi-Party
system.
Special Bureau:
Before Nepal Police obtained the statutory status in 1951, Central Intelligence Bureau was
established in 1951 with the fundamental objective of collection, analysis and dissemination of
“information” –the backbone of successful police operation. In 1951 the agency was renamed as
Central Intelligence Department (CID). With a view to mitigate the impacts of international
terrorism in the national environment, “Special Section” was established in Police Headquarters
in 1995 which was transformed into “Anti-Terrorist Research and Analysis Cell”(ATRIC) in
2001 as per the prevailing context. Globalization of terrorism and more vulnerable South Asian
region induced upgrading of the “Cell” as “Anti-Terrorist Directorate” in 2009.
“Anti-Terrorist Directorate”, previously operating with limited responsibilities of anti-terrorist
activities to address the then prevailing crises, has overseen an expansion of responsibilities in
later days including the investigation and operation against any other form of extremism and the
pre-terrorism stages like collection of black money, abuse of information technology, relation
with international extremist groups etc. In this context, the term “Anti-Terrorist” doesn’t seem to
cover the broader scope of the unit. Identifying the “Operational” nature of the unit with added

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responsibilities of political analysis to conduct surveillance upon political activities and
politically motivated armed activities, a cabinet decision of the Government of Nepal in April 4,
2013 renamed the directorate as “Special Bureau”.
a) Vision of Special Bureau:
To protect the nation and the citizens from terrorism, trans-national organized crimes and
other crimes that pose threats to the internal security.
b) Structure of Special Bureau:
D. Outline of Intelligence Organizations and their structure:
The primary intelligence organization of Nepal is National Investigation Department (NID)
which collects and analyzes information regarding internal as well as external affairs. There is no
distinct organization to look after the external affairs. NID is solely responsible for internal as
well as external intelligence. It is responsible for intelligence, counterintelligence and
counterespionage.
Besides, Nepal Army, Nepal Police and Armed Police Force have also developed their own
intelligence units. Nepal Army has Directorate of Military Intelligence. Special Bureau of Nepal
Police is responsible for conducting intelligence as well as operational activities against
domestic, regional and international terrorism and transnational crimes.

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E. Domestic and International Terrorism Situation:
1) Trends:
i. Regional Context:
Nepal is not affected by the threats of international terrorism but has the vulnerability of its
geopolitical situation. Because of its strategic location between China and India, the land of
Nepal may be used by the terrorist groups to operate against these countries. The
vulnerability is higher between Nepal and India because of the porous border these countries
have been sharing. Terrorism in South Asia has significantly jeopardized the overall regional
security. Tensed relationship of the two mostly populated countries and historical rivals
among the countries in this region: India and Pakistan, inter-state conflicts, internal
turbulences of the SAARC countries and various separatist and extremist movements in the
region have contributed to various types of terrorist activities and organization. The major
factors that support to build up terrorism and its tentacles are as follows:
• Historical rivalry between India and Pakistan that enhances regional level “Cold
War” (Activities in Line of Control and other terrorist incidents).
• Unstable government and long history of power struggle between then Super Powers
in Afghanistan. (Taliban, Afghan Mujahidin, Al Qaeda’s Activities).
• Islamic Extremism in regional level (Student Islamic Movement of India, Jaish-e-
Mohammad, Lashkar-e-Toiba).
• Separatist Movement (LTTE, JKLF, Manipur Liberation Front, Tamilnadu
Liberation Front).
• Armed insurgency against existing political systems and governments (Maoist
Communist insurgencies in various states of India).
• Organized Criminal Gangs (D Company, Chhota Rajan).
South Asia is very fertile land for terrorism. The vast under privileged population, illiteracy,
poverty and religious extremism are the catalyst agents that provide conducive environment
for recruitment of cadres. In various occasion, regional power’s unauthorized clandestine
operations also add terrorism to flourish.

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Nepal is never been in central stage in regional terrorism. Whereas its geo-political location
and historical rivalry among neighboring countries like India, Pakistan, China and
Bangladesh makes Nepal’s territory always in threat. For instance, Indian Airlines Flight 814
commonly known as IC 814 was en route from Kathmandu, Nepal to Delhi, India was
hijacked (1999).
Basically the features of international terrorism in the context of Nepal are as follows:
 No International Terrorist Organizations found to be operating in / from Nepal.
 No evidence so far that any international terrorist organization has “targeted” People &
Property in Nepal.
 Seeing nature of present terrorist MO, some possible clandestine activities of terrorists
can’t be denied. The land of Nepal can be used as:
o Transit, Shelter, Meeting point.
o Recruiting cadres and form Sleeping Cell.
o Terrorist Financing. (Money Transfer through Nepal).
ii. Domestic Context:
Regarding domestic terrorism, after the Maoist insurgency various armed groups and
extremist groups based on regionalism and ethnic identity had been active in the southern
part of Nepal (Terrain) and the Eastern hill. Some Hindu extremist groups had also been
active in terrorist activities but most of them have been neutralized recently. In history,
Nepal suffered various types of armed insurgencies in different period. In 1951, Nepali
Congress, a mass based political party also introduced and practiced “armed Struggle” in
their agenda against the Existing political system. The Short while after China had occupied
Tibet (1951), the fled Tibetan tried to regain their territory with armed struggle from
Nepalese land. That armed struggle, popularly known as “Tibetan Khampa Revolt (1975)”
was swiftly suppressed by Nepali Army with the help of Nepal Police. Furthermore in
eastern part of Nepal, the politically motivated bunch of youth tried to copy Naxalite
Movement of adjoining state of India with killing so called local aristocrats (1971). Whereas
recently a radical political party (Communist Party of Nepal, Maoist) influenced by Maoist
ideology launched their 10-year long armed insurgency (so called “Peoples’ War”- 1996)

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against Constitution Monarchy. All these movement and struggle had once been declared
terrorist acts by Nepalese Government and but were solved politically.
The 10 year long armed insurgency gave rise to various armed groups based on regionalism
and ethnic identity. The stretch of merely supervised boarder between Nepal and India and
cultural and other similarities with Indian Citizen also flare up terrorism in that area. In
hilly region, the issue of cast, communities and religion based federalism as well as opinions
in empowering marginalized people provoke people to come with violence.
Nepal Police, with the help of other security agencies are quite successful to curb the
problem. So terrorism is not a burning issue for internal security.
2) Group Concerned:
Regarding international terrorism, leaders, cadres or associates of Al-Qaida, Indian
Mujahidin (IM) and Lashkar-e-Toeba (LeT) have been detained from Nepal. Besides, some
of the separatist terrorist groups of North East of India have also been arrested from Nepal.
In domestic context, Janatantrik Tarai Mukti Morcha (JTMM), Akhil Terai Mukti Morcha
(ATMM), Janatantrik Terai Mukti Morcha (Rajan), Terai Army, Limbuwan, Khumbuwan,
Nepal Defense Army is some of the operating groups.
3) Their Connection:
In international context, Indian IM and LeT are related to each other. These groups have
been carrying our various terrorist activities in India and there seems a reasonable ground to
believe that these groups operate with each other’s collaboration. In domestic context,
various ethnic armed groups of Terrain are also connected. Sometimes these groups form
coalition to coordinate their activities and armed rebellion. But these efforts have been
feeble because of the police operations against these groups and competition within these
organizations to be the leader.
4) Financial Resources:
International terrorist groups have different financial sources. They usually generate their
income through illegal businesses and foreign sources. Supply of fake currencies has been
detected as one of the major sources of their financing. In domestic context, most of the

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armed groups survive on extortion and looting. They threat the local people and government
representatives of the local development committees and other government offices. Arms
smuggling and kidnapping is another instrument used by these groups to generate income.
F. Countermeasures against Terrorism in Nepal:
a) Collection and Production of Information:
National Investigation Department (NID), which is primarily responsible for intelligence,
collects and produces information regarding terrorism and other matters of national
interest. Special Bureau and Central Investigation Bureau of Nepal Police are other units
that collect and analyze intelligence regarding terrorism. Besides, Nepal Army and the
Armed Police Force have also maintained their own intelligence system. As a unified
approach, the Central Security Committee chaired by the Home Minister and National
Security Council also coordinate the intelligence sharing among these security
organizations, regional and international level.
b) Countermeasures against explosives and firearms:
Various explosives and firearms used and concealed by the rebels during decade long
(1996 to 2006) Maoist insurgency has been detected through various campaigns
throughout the country. Recently Nepal Police had also asked people to voluntarily
submit any illegal weapons possessed by them and the campaign had also gained
significant remarks and achievements. Explosive Substances Act, 1961 and Arms and
Ammunition Act, 1962 are the two basic legal instruments that are aimed at the curbing
and controlling of the illegal possession of arms, ammunitions and explosives.
c) Immigration control:
The entry point through air is the only international airport in Kathmandu known as
Tribhuvan International Airport (TIA). Immigration Department, Nepal Army, various
units of Nepal Police (Anti-terrorist Desk of Special Bureau, Central Investigation
Bureau and Narcotics Control Bureau), Armed Police Force and National Investigation
Department are working in close connection with the airport authority. The open border
with India has been checked with Immigration offices, border police posts, border out

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posts of Armed Police Force, technical surveillance and vigorous checking in the entry
points.
d) Countermeasures against terrorist financing:
After the Anti-Money Laundering Act, 2008 came into force; Nepal has strengthened its
legal and institutional efforts against terrorist financing. Currently, Department of Money
Laundering Investigation is primarily responsible for the investigation of money
laundering and terrorist financing. Special Bureau (SB) and Central Investigation Bureau
(CIB) of Nepal Police, Financial Intelligence Unit (FIU) of the National Bank of Nepal
(Nepal Rastra Bank) are other agencies that are involved in intelligence collection and
investigation regarding terrorist financing.
e) Counter radicalization:
There are no specific programs to check radicalization. But general programs are
regularly conducted by the Ministry of Peace and Reconstruction, Nepal Police and
Nepal Armed Police Force (APF) to promote harmony among various ethnic and
religious groups of the country.
G. Terrorist’s use of internet:
Nepal Police has established a Cyber Crime Investigation Cell under the Central
Investigation Bureau (CIB) and another under the Kathmandu Metropolitan Police.
H. Counterterrorism Measures in General:
I. Major International Commitments regarding Terrorism:
• Convention on Offences and Certain Other Acts Committed On Board Aircraft,
commonly called the Tokyo Convention, 1963
• International Convention for the Suppression of the Financing of Terrorism, 1999
• “SAARC Regional Convention on Suppression of Terrorism and its Additional
Protocol (Signed on 2004)
• The United Nations Global Counter-Terrorism Strategy, (September 8, 2006 -
General Assembly Resolution 60/288).

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II. Established Legal instruments countering terrorism in Nepal:
Regarding the implementation of Article: 6 of the convention, the following legal
entities have been enacted and enforced by the country:
1) Explosive Substances Act, 1961
2) Arms and Ammunition Act, 1962
3) General Code, 1964
4) Narcotics Drugs (Control) Act, 1976
5) Crime Against State and Punishment Act, 1989
6) Money Laundering Prevention and Terrorist Financing Act, 2008
7) Organized Crime Control Act, 2014
8) Extradition Act, 2014
9) Mutual Legal Assistance Act, 2014
10) Proceeds of Crime Act, 2014
(Note: No specific anti-terrorist law)
III. Government policy on Terrorism:
• The Government of Nepal condemns terrorist activities in any forms and
manifestation.
• Supports the International/Regional campaigns against terrorism.
• Never allows its soil to be used by terrorists against any country
• Established institutional arrangements to combat terrorism.
• Ratified range of regional and international instruments to fight against the
terrorism.
• Upgrading the concerning legal instruments.
IV. Institutional Arrangements:
a) Nepal Army
Nepal Army has specialized units capable of conducting counterterrorist
operations. The army has enhanced its capacity regarding terrorist threats and
rescue operations.

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b) Special Bureau (SB) and Central Investigation Bureau (CIB) of Nepal Police:
Special Bureau and Central Investigation Bureau are the specialized agencies
responsible for information collection, investigation and conducting operations
against terrorism and financing of terrorism. In 2014, the scope of these
specialized agencies has been expanded to regional level and international airport.
These specialized units have yielded significant results with regard to terrorism.
Anti-terrorism Desk of Special Bureau at the Tribhuvan International Airport has
been successful in screening, identifying and arresting some notorious terrorists
with seizure of significant amount of Fake Indian Currency Notes.
c) Department of Money Laundering Investigation (DMLI):
Under the Ministry of Home Affairs, the department has been stepping
investigation with regard to money laundering and terrorist financing in
coordination with CIB and SB. DMLI has been successfully investigating cases of
money laundering and terrorist financing.
d) Financial Intelligence Unit (FIU):
FIU, under the National Bank (Nepal Rastra Bank), has been instrumental in
prompt sharing of intelligence regarding terrorist financing.
e) Armed Police Force (APF):
Armed Police Force is a paramilitary organization that supports Nepal Police to
prevent and control terrorism.
f) National Investigation Department (NID):
NID is primarily responsible for the collection, analysis and dissemination of
intelligence regarding domestic, regional and international terrorism.

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I. Case Examples:
1) Al-Qaida's Nepal Plot operation.
On May 2004, Nepal Police received an information from reliable source a suspicious
person Md. Ismail Faiz , visiting Nepal from 24th of May, 2004. After tracing the
suspicious person, Nepal Police immediately launched surveillance against him and
found he visited various places of Nepal and met the persons suspiciously but, seemed as
familiar with the area. Nepal Police received a surveillance report that the suspicious
person named Md. Ismail Faiz frequently met to Bashir Ahmed at the Kashmiri Shop,
Thamel, one of the famous tourist shopping destination in capital city, Kathmandu Nepal,
who was previously under surveillance. Md. Ismail Faiz also frequently visited other
places like Nagarkot & Pokhara during his stay, which are also tourist destination in
Nepal. He also met to the Fulsen Khan, Chairman of Al-Hermann education society &
some other suspicious persons as well. He departed to Pakistan on 26th of May, 2004.
After analyzing the intelligence Nepal Police arrested six suspects including Bashir
Ahmed on September 3rd, 2004. After investigation they were found involved in
financial transaction of Al-Qaida allied network. They were prosecuted in the court.
2) Arrest of Irfan Ahmad: A Lashkar-e-Taiba (LeT) militant and human facilitator.
A Lashkar-e-Toeba militant and human facilitator called Mohamad Ibrahim Musalman @
Harun @ Pappu @Unush (NEPAL) @Irfan Ahamad (INDIA) , Muzambil had been
arrested by Nepal Police in 2010 . Irfan is an Indian national belonging to Uttar Pradesh
(a Northern State in India) and was involved in Rajdhani Express Train explosion in India
in 1993. After the incident, he was tried in an Indian court for the terrorist act but was
released after serving some period on remand. He, then, escaped from India and began to
live in Nepal since 2001 with different names and address. He ran different businesses
and even consistently changed the residence and places. Exploiting the fragile
circumstances of Nepal in that period, the person had also obtained Nepalese citizenship.
Nepal Police had obtained some lead information from Indian counterparts that the
person may have fled to Nepal from India. The police began investigation and conducted

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various surveillance operations and analysis of transactions and phone calls too. Finally
police arrested Irfan in 2010.
• In the investigation it was found that he had entered the land of Nepal in 2001. In
2003-2005, he started the business of a Cyber Cafe in Kathmandu city, the money
was invested by a person called Suleiman, a Pakistani citizen. In 2005-2007, he
started to run a jacket factory with a Nepalese person. He visited Pakistan in 2007
then he left Jacket Factory. In 2007, He shifted to Nepalgunj another city of Nepal
with whole family.
• On 3rd of February 2007, He obtained a Nepalese Citizenship from Kapilvastu
District in the name of Mohamad Ibrahim Muslman by producing fake documents
and witnesses. Since the government had the policy to provide citizenship to the
stateless people of Terrain region, Irfan Ahmad exploited the circumstances and
succeeded to obtain the citizenship. In 2008, He again shifted from Nepalgunj to
Bhairahawa another city of Nepal. Police investigated the whole process and
activities of the person and nabbed him in 2010 and he was prosecuted in the
District Court Palpa in forgery case.
3) Indian Mujahidin (IM) Militants arrested in Nepal.
On 27 February, 2010, Nepal police arrested a suspicious person Salman Seikh @ Fahad
Ansari @ Chotu @ Shahid @ Akib @ Sameer @ Saddam @ Mohd Fahad Ansari in
association with Indian Mujahidin (IM) from capital city Kathmandu. After an
investigation he was found involved in bombing in New Delhi, Banaras including seven
other places of India. After the bombing fled to Nepal on 2008 and. He went to Dubai
from Nepal and entered to Pakistan to participate 3-month IM training on 2009. After
completion the training, he came back to Nepal to enter to India. Likewise 2 other IM
militant named Dr. Shahnawaj @ Sahnawaj Miya, address: Azamgarh, U.P.(India) and
Abu Rashid @ Ahamd Husain Miya ,Address : Azamgarh, U.P., India also arrested in
Nepal on February, 2010.

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J. Coordination among law enforcement authorities at the Domestic and International level:
Responsible institutions are continuously sharing information among domestic law
enforcement authorities in co-operation to combat domestic and international/regional
terrorism through Special Bureau (SB) and Central Investigation Bureau (CIB) under
Police Headquarters.
K. Consideration matters on terrorism:
o Need to increase cooperation and coordination between law enforcement agencies both
formal and informal channels at the National Level, Bilateral and Regional &
International Label.
o Need to comprehensively review the existing mechanisms to share information in a
secure manner in view of the current trends in terrorism and its related offences and for
the information to be shared on a real time/ near real time basis.
o Need to conduct meeting of the Focal Points of International level to discuss current
terrorist situation and review the combating terrorism strategy.