11.3 Banking Crime

The statute: the Banking Crimes and Punishment Act, 2064 (2008) — the dedicated code criminalizing the offences against banks and financial institutions. The offence family (by principle): the loan frauds (obtaining loans by false statements, forged collateral, the multiple- pledging of the same security); the misuse of credit (the loans diverted from the stated purpose); the cheque-and-instrument offences (the forged and misused instruments); the insider abuse (the directors' and staff's self-dealing, the insider credits); the embezzlement of deposits; the fraudulent banking business (taking deposits without license — the informal "savings" rackets). The design notes: the dual-liability pattern (the institution fined, the responsible officer imprisoned); the NRB's regulatory companion (the corrective regime beside the criminal); the recoveries' economics (the civil recovery beside the prosecution).