Nepal’s Finance Minister Bishnu Paudel claims the nation will exit the FATF grey list before the two-year deadline due to previous government failures. Nepal must improve its financial regulations and enforce stricter controls against illicit activities. The current administration aims to take rapid action to meet FATF standards set for October 2024, avoiding harsher penalties.
Nepal’s Finance Minister, Bishnu Paudel, stated that the country will exit the Financial Action Task Force (FATF) grey list for money laundering and terrorist financing before the two-year deadline. During a parliamentary session, he attributed Nepal’s inclusion in the list to the previous government’s failures while emphasizing the current administration’s commitment to rectifying the issue.
Paudel mentioned that Nepal is under intensive monitoring, commonly referred to as the grey list. He assured that all necessary procedures would be completed promptly for Nepal to be removed from the list ahead of schedule. He also indicated plans to present further details to parliament in a forthcoming white paper.
It’s the second time Nepal has been listed on the FATF grey list, with the most recent addition occurring following a plenary meeting in February 2023. Previously, Nepal was on the grey list from 2008 to 2014. The government faces a critical two-year window to reform its financial sector to avoid being escalated to the black list, which entails harsher international sanctions.
The FATF categorizes jurisdictions under increased monitoring due to deficiencies in their anti-money laundering (AML) and counter-terrorist financing (CFT) regimes, while also engaging with these countries to remedy issues. Countries on this list are given two years to improve legislation and enforce stricter controls against illegal activities to avoid being blacklisted.
Nepal’s current challenges stem largely from its inability to fully implement vital legal, policy, and structural reforms, despite some advancements in legislation. Following an extension granted in July 2023, Nepal now has until October 2024 to meet FATF’s minimum standards, as it has not adequately addressed prior deficiencies. To exit the grey list, the government must now implement stringent measures for managing illicitly obtained assets.
Nepal’s Finance Minister expressed optimism that the nation will successfully exit the FATF grey list before the two-year deadline. The government aims to rectify past deficiencies under intensive scrutiny, as it has faced challenges enforcing legal reforms necessary to combat financial crime. Meeting the FATF’s standards by the new deadline in October 2024 will be crucial to prevent further sanctions and potential blacklisting.
Original Source: thenewsmill.com
