Nepal aims to exit FATF grey list ahead of schedule: Finance Minister

KATHMANDU: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has expressed confidence that Nepal will exit the Financial Action Task Force (FATF) grey list ahead of schedule.

Following the decision to place Nepal on the grey list, Paudel assured that the country is capable of exiting the list before the stipulated timeframe.

According to Minister Paudel, Nepal was placed on the grey list due to its failure to implement necessary reforms on time. “The Paris meeting has already approved Nepal’s action plan. By effectively implementing this plan, we will exit the grey list earlier than expected,” he stated.

Nepal was placed on the grey list for two years due to its inability to meet the required anti-money laundering standards. The decision was formally made during a meeting held in Paris.

Prior to this, both Finance Minister Paudel and Nepal Rastra Bank Governor Maha Prasad Adhikari had hinted at the possibility of Nepal being included in the list.

As per Nepal Rastra Bank, Nepal has fulfilled only 21 out of the 40 conditions set by the FATF. The Asia-Pacific Group on Money Laundering (APG) assessed Nepal in 2023 and placed the country under a one-year observation period.

However, due to ineffective implementation, Nepal was ultimately placed on the grey list.

Governor Maha Prasad Adhikari stated that although Nepal had made significant improvements compared to 2023, they were insufficient to fully satisfy the FATF.

Nepal was previously on the grey list from 2008 to 2014 and managed to exit by strengthening its legal and institutional framework against money laundering.

Nepal’s anti-money laundering framework has been assessed three times—in 2005, 2010, and 2023. In 2010, the country had only met 3 out of 49 conditions, whereas it has now fulfilled 21 out of 40 requirements.

The government is committed to implementing the remaining measures as soon as possible to ensure Nepal’s swift removal from the grey list.