Legal Measures of Banking Offence and Punishment System; A Reference of Nepal

Abstract

Banking business is most serious business across the globe. There has been a long history of banking fraud across the globe. It has criminalized such frauds with the expectations to establish banking order, credibility, good corporate governance, exercise of social responsibility, and respect of stakeholders of this sector. Also, issue of bankruptcy had emerged with the incredible act of early personal banking business. Yet, it is now the part of most stringent regulation and control system of banks covered by banking offence and punishment system and is also called law against banking fraud enacted for the protection of banking entities and its stakeholders. It could be the part of both general and special criminal law depending on the development level of the economy and banking system. As the banking fraud may be threat for the banking stability and economic stability, its effect is very adverse in economy and among people. Nowadays, these crimes have transnational and organized in nature. The system of using extradition and mutual legal assistance system are recommended if so requires. So, banking fraud is criminalized by each and every country of the world. This paper mentions the banking fraud covered and criminalized under Banking Offence and Punishment Act of Nepal.