Nepal begins efforts to exit FATF grey list

April 8, Kathmandu: Nepal has initiated groundwork to remove itself from the grey list of the Financial Action Task Force (FATF). A meeting of the Money Laundering Prevention Directive Committee, held on Monday, finalized an action plan to achieve this goal and decided to implement it effectively.

The action plan includes specific responsibilities for relevant agencies, activities to be undertaken, and timelines for completion. Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel emphasized the need to work according to the action plan to ensure Nepal’s removal from the grey list. He further stressed the importance of long-term measures to prevent Nepal from being listed again in the future.

Law, Justice, and Parliamentary Affairs Minister Ajay Kumar Chaurasia stated that Nepal did not lack the necessary laws to exit the grey list. He expressed confidence that with strong political will and commitment, the country could achieve this objective.

Attorney General Ramesh Badal highlighted the need for institutional good governance across all agencies, while Chief Secretary Eknarayan Aryal underscored the importance of coordination among stakeholders and prioritizing tasks. Aryal added that leveraging technology in implementing the action plan could expedite Nepal’s removal from the grey list.

Acting Governor of Nepal Rastra Bank, Neelam Dhungana Timsina, emphasized the importance of starting work early as per the action plan rather than leaving it to the last minute.

Participants in the meeting agreed that efforts should focus on areas such as risk assessment, inter-agency coordination, regulation and supervision, investigation and prosecution, and handling of crime-related assets. They stressed that while laws are in place, the emphasis must shift toward effective implementation.

Nepal was placed on the FATF grey list on February 21, 2025, prompting these concerted efforts to address deficiencies and restore the country’s financial standing.