Nepal has been placed on the FATF grey list again due to its insufficient anti-money laundering measures, leading to political unrest as opposition demands Prime Minister KP Sharma Oli’s resignation. This decision follows a plenary meeting in Paris, where Nepal was cited for failing to implement necessary reforms. Lawmaker Arjun Narshingh KC proposed demonetizing larger banknotes as a potential solution. In related news, the Philippines has been removed from the list while Laos joins Nepal.
Nepal’s inclusion in the Financial Action Task Force (FATF) grey list has ignited significant political controversy, particularly as the opposition party, CPN-Maoist Centre, calls for the resignation of Prime Minister KP Sharma Oli. This is Nepal’s second inclusion on the grey list, which assesses countries with weaknesses in anti-money laundering and counter-terrorism measures. Previously, Nepal was listed from 2008 to 2014.
During a recent session of the House of Representatives, opposition member Madhav Sapkota criticized the government’s efforts, asserting that it failed to prevent this classification. The FATF made its decision during its plenary meeting in Paris held from February 17-21, emphasizing that Nepal hasn’t effectively executed the necessary reforms to address financial crimes fully. The consequences of these shortcomings could result in stricter international restrictions if not resolved within two years.
Furthermore, Nepali Congress lawmaker Arjun Narshingh KC suggested the demonetization of NPR 500 and 1000 banknotes to combat illicit financial activities. He advocates for parliamentary discussions and thorough investigations into corruption to protect Nepal’s standing in the global financial community.
In the latest developments from the FATF, the Philippines has been removed from the grey list, while both Laos and Nepal were added. Moreover, South Africa expressed disappointment over not being removed from the list as it sought to lift its designation. The FATF also confirmed that Russia’s suspension from membership remains in effect due to its invasion of Ukraine.
Nepal’s grey list designation by the FATF has triggered political upheaval and calls for leadership accountability over perceived governmental failures. The FATF’s decision highlights the urgent need for reforms in Nepal’s anti-money laundering strategies. Lawmakers are proposing radical measures to address these challenges, as the nation faces potential repercussions if issues are not rectified promptly. Meanwhile, Laos joins Nepal on the list, adding to the financial concerns in the region.
Original Source: resonantnews.com
