March 6, 2025
2 mins read

Nepal Vows Early Exit FATF Grey List 

Finance Minister Bishnu Paudel placed the blame on the previous administration for Nepal’s inclusion in the FATF grey list. 

Nepal’s Finance Minister Bishnu Paudel has assured that the country will be removed from the Financial Action Task Force (FATF) grey list for money laundering and terrorist financing before the stipulated two-year deadline. 

Addressing lawmakers during Wednesday’s parliamentary session, Paudel placed the blame on the previous administration for Nepal’s inclusion in the FATF grey list. He emphasised the government’s commitment to completing all necessary reforms within the given timeframe. 

“We are under intensive monitoring, commonly known as the grey list. The government is fully committed to fulfilling all required procedures and ensuring Nepal’s removal from the list within the designated period,” Paudel said. “Though this government alone was not responsible for Nepal’s inclusion in the grey list, we will take serious and sincere steps, and the results will speak for themselves.” 

“The government is fully committed to fulfilling all required procedures and ensuring Nepal’s removal from the list within the designated period.”

Bishnu Paudel, Finance Minister

The Finance Minister also promised to present a white paper in parliament soon, detailing the government’s strategy for compliance with FATF regulations. He expressed confidence that Nepal’s name would be removed from the list well before the deadline. 

This marks the second time Nepal has been placed under FATF’s increased monitoring. The country was previously on the grey list from 2008 to 2014. The latest decision was made during the FATF plenary meeting held in Paris from 17-21 February. 

The FATF, a global anti-money laundering watchdog, announced on 21 February that Nepal and Laos had been added to its list of jurisdictions subject to increased monitoring. The grey list, officially termed “jurisdictions under increased monitoring,” includes countries with strategic deficiencies in their anti-money laundering (AML) and counter-terrorist financing (CFT) regimes. However, it also acknowledges that these countries are actively working with the FATF to resolve these issues. 

If Nepal fails to meet FATF standards within two years, it risks being blacklisted, which would result in severe restrictions on international financial transactions and increased scrutiny from global financial institutions. The country must demonstrate significant improvements in legislative frameworks, law enforcement, and measures against illicit financial activities to avoid such consequences. 

Nepal’s placement on the grey list stems from its failure to fully implement necessary legal, policy, and structural reforms despite some progress. The country was initially given a deadline of October 2024 to meet FATF requirements, following an extension in July 2023. However, FATF determined that Nepal had not sufficiently addressed the outstanding deficiencies by that deadline, leading to its continued placement on the list. 

To ensure compliance and expedite Nepal’s removal from the grey list, the government will need to enforce stricter measures to regulate and manage illegally acquired assets. Finance Minister Paudel reiterated that Nepal would not wait until the last moment to act and would work proactively to restore confidence in the country’s financial system. 

Previous Story

Kiwis Soar to Final, India Awaits 

Next Story

Global Economic Factors Driving India’s Stock Market Downturn

Latest from -Top News

India, Namibia to Boost Ties During Modi Visit

This will be the first visit of Prime Minister Modi to Namibia, and the third-ever Prime Ministerial visit from India to Namibia….reports Asian Lite News Prime Minister Narendra Modi’s forthcoming visit to

Quantum Leap Secures India’s Edge

The Minister said India has entered a new quantum era, set to transform future warfare….reports Asian Lite News India has taken a major leap in defence and cyber security by successfully demonstrating

India’s Growth Defies West Asia Tensions

The deepening crisis in West Asia, particularly between Israel and Iran, has had little to no visible impact on India’s economic trajectory or its export performance….reports Asian Lite News The limited trade

FM Sitharaman Embarks on Three-Nation Tour

She is leading the Indian delegation from the Department of Economic Affairs under the Ministry of Finance….reports Asian Lite News Union Finance Minister Nirmala Sitharaman commenced her official visit to Spain, Portugal,
Go toTop

Don't Miss

In Nepal, Left parties battle ‘regressive’ forces

According to observers, there will be a competition between the

Oli regime reinstated in Nepal

Oli, who was reappointed on Monday night, is planning to