Nepal’s inclusion in the FATF grey list has caused political upheaval, with calls for Prime Minister KP Sharma Oli’s resignation. The designation, highlighting deficiencies in anti-money laundering systems, could lead to severe penalties if not addressed. Meanwhile, Nepal’s situation is compounded by the gray listing of Laos, while the Philippines has been removed from the list.
Nepal’s recent inclusion in the FATF grey list has triggered significant political unrest. The CPN-Maoist Centre opposition party is calling for Prime Minister KP Sharma Oli to resign, citing this as a failure of his government. This marks the second instance of Nepal being on the grey list, having previously been there from 2008 to 2014, indicating continued inadequacies in their anti-money laundering and counter-terrorism financing efforts.
In a recent House of Representatives session, opposition MP Madhav Sapkota criticized the government’s inability to prevent this designation and urged for Oli’s resignation. The FATF’s announcement was made after its plenary meeting held in Paris from February 17 to 21, highlighting Nepal’s shortcomings in implementing vital reforms to combat financial crimes effectively.
With the possibility of stricter international transaction barriers and sanctions looming, Nepal must address these deficiencies within two years. Further proposals, such as Nepali Congress lawmaker Arjun Narshingh KC suggesting the demonetization of NPR 500 and 1000 banknotes, aim to mitigate illicit financial activities and reinforce Nepal’s global reputation.
In the recent FATF updates, while the Philippines was removed from the grey list, both Laos and Nepal have been added. South Africa also expressed disappointment as it sought to lift its designation. The FATF additionally confirmed that Russia’s membership suspension remains unchanged due to the ongoing conflict stemming from its invasion of Ukraine.
Nepal and Laos have recently been added to the FATF grey list, indicating serious concerns over their financial regulations. This has led to political turmoil in Nepal, prompting calls for the Prime Minister’s resignation. Failure to address these deficiencies may result in increased international sanctions, undermining their global standing and financial security.
Original Source: resonantnews.com
