Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Financial Action Task Force (FATF), an international body that monitors anti-money laundering (AML) and counter-terrorist financing (CFT) activities, has decided to place Nepal on its grey list following its plenary meeting on Friday.
In response, Nepal has pledged to strengthen the effectiveness of its AML/CFT system. FATF stated that Nepal has made a high-level political commitment to work with FATF and the Asia/Pacific Group on Money Laundering (APG) to enhance its AML/CFT framework.
“Nepal has committed to strengthening its system for preventing money laundering and terrorist financing through collaboration with FATF and APG at a high political level,” FATF announced while placing Nepal on the grey list. “Since the approval of its Mutual Evaluation Report in August 2023, Nepal has made progress on some of the recommended actions.” FATF acknowledged that Nepal has taken steps such as easing asset confiscation laws and enhancing the capacity of the Financial Intelligence Unit (FIU).
To exit the grey list, Nepal must implement seven key reforms as outlined in FATF’s action plan:
7. Enhance technical compliance on targeted financial sanctions against those financing terrorism and biological weapons.
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