This is a scoping study to identify main issues and make the case for more detailed guidance to the Nepali government and Nepal’s community forestry stakeholders on developing an effective regulatory system. The development of such a system would help reduce poverty, strengthen the economy and conserve the environment in Nepal. In Nepal, many kinds of forest products are traded from diverse types of forests. This study briefly describes the systems to verify all kinds of products from all types of forests, but focuses mostly on the timber trade from government and community forests. It has been difficult to find accurate figures on the extent of forest products-related corruption in Nepal. While there is no doubt it is widespread, the estimates given should be treated with caution, with the knowledge that they are based on information available in an environment in which it is currently difficult to work.