KATHMANDU, June 22: Nepal has once again failed to secure removal from the Financial Action Task Force (FATF) grey list.
A plenary and working group meeting of the FATF held in Paris, France, decided to keep Nepal on the grey list, which includes countries considered at risk for money laundering and terrorist financing.
The FATF is an intergovernmental body established to combat money laundering and the financing of terrorism worldwide. It places countries facing deficiencies in these areas on either a grey list or a black list.
The organisation evaluates countries based on 11 effectiveness indicators and 40 technical compliance criteria related to anti-money laundering and counter-terrorist financing measures.
Nepal was previously placed on the FATF grey list in 2008 and was removed from the list in 2014.
In 2012, Nepal came close to being blacklisted. At the time, the International Monetary Fund (IMF) pledged that reforms would be implemented in Nepal and urged against blacklisting the country. That commitment helped Nepal avoid being placed on the blacklist.
Following policy reforms undertaken on the advice of the IMF, Nepal not only avoided blacklisting but was also removed from the grey list in 2014.
Since then, however, Nepal’s efforts to stay off or exit the grey list have not been successful.
The FATF has advised Nepal to strengthen law enforcement, improve its financial monitoring system, and tighten oversight of high-risk sectors in order to meet the requirements for removal from the grey list.
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