Government Accelerates Efforts to Remove Nepal from FATF Grey List by 2026

The government is working to remove Nepal from the FATF grey list by mid-February 2026, focusing on policy adjustments and reforms. Efforts are being directed toward regulating informal economic activities and improving financial transparency.

An official from the Ministry of Finance stated that the upcoming policies and programs will outline necessary procedures to bring informal businesses into the formal sector gradually. Strengthening oversight in high-risk sectors like cooperatives, casinos, and mining is also a priority.

Nepal remains on the grey list alongside 24 other countries due to concerns over weak financial monitoring. The FATF has called for better coordination among anti-money laundering bodies and stricter regulatory measures. The government has committed to implementing reforms within a year to address these issues.

The IMF has also urged Nepal to take immediate action to improve financial governance. Meanwhile, preparations for next year’s policies and programs are underway, with plans to finalize them by mid-April.

President Ram Chandra Paudel is scheduled to present the policies and programs in a joint parliamentary session on May 29. The government aims to strengthen financial regulations and enhance international confidence in Nepal’s economy.