Nepal Placed on FATF Greylist for the Second Time

The Financial Action Task Force (FATF) has placed Nepal on its grey list for the next two years. The decision was made during the ongoing FATF meeting in Paris, France. This marks the second time Nepal has been placed on the grey list, with the first instance occurring from 2009 to 2014.

FATF President Elisa de Anda Madrazo is set to officially announce Nepal's inclusion on the grey list during a press conference at 8:15 PM Nepali time on Friday. Alongside Nepal, Laos has also been added to the grey list, while the Philippines has successfully exited after two years.

Following its greylisting, Nepal will be required to implement a set of corrective measures within the designated two-year period. FATF will monitor Nepal’s progress and determine whether the country can be removed from the grey list or faces the risk of being moved to the blacklist if satisfactory improvements are not made. The assessment highlighted significant concerns, including corruption, tax evasion, financial crimes, and widespread informal money transfer activities such as hundi.

FATF, an intergovernmental organization established by the G7 nations, is responsible for setting global standards to combat money laundering and terrorist financing. Representing Nepal in the second plenary session are Phanindra Gautam, Secretary at the Office of the Prime Minister, and Hari Nepal, Director of the Nepal Rastra Bank and a member of the Financial Intelligence Unit (FIU).