Nepal’s Finance Minister Bishnu Paudel promised the country will exit the FATF grey list before the two-year deadline. He blamed previous administrations for the listing and emphasized the government’s commitment to reform. Nepal has until October 2024 to meet FATF standards to avoid a potential blacklisting, with strict measures needed for compliance.
Bishnu Paudel, the Finance Minister of Nepal, expressed confidence that the country will be removed from the Financial Action Task Force (FATF) grey list prior to the two-year deadline. He attributed Nepal’s inclusion to the actions of previous administrations and emphasized his government’s commitment to address the required reforms. During a parliamentary session, he noted, “We are under intensive monitoring, which in commonly understood language is called the grey list. The government is committed; within the given time period we will complete all the procedures that are designated and will be out from list.”
The recent FATF plenary in Paris, held from February 17 to 21, led to Nepal’s addition to the grey list, marking the second occurrence for the nation—previously being listed from 2008 to 2014. As reiterated by Minister Paudel, Nepal must undertake essential clean-up of its financial sector within the stipulated two years to avoid being blacklisted, a situation that would impose severe sanctions and transaction hurdles.
The FATF categorizes jurisdictions under increased monitoring as those that exhibit strategic deficiencies in their anti-money laundering (AML) and counter-terrorist financing (CFT) systems, but that are engaged with the FATF for improvements. Countries are given two years to rectify legislative and operational deficiencies to remove themselves from such listings.
Nepal’s current grey list status is due to its inability to implement the necessary legal, policy, and structural reforms fully, despite some progress within its legislative framework. In order to meet FATF standards, the country has been allotted until October 2024, with a recent extension granted in July 2023. Nonetheless, insufficient actions taken thus far prompted international scrutiny.
The government is now tasked with rigorously enforcing measures against illegally obtained assets. The commitment to remove Nepal from the FATF grey list is viewed as essential for enabling seamless international financial transactions, enhancing the nation’s economic standing.
In summary, Finance Minister Bishnu Paudel assured that Nepal will exit the FATF grey list before the two-year deadline imposed. The previous government’s responsibility for the grey listing was acknowledged, and commitments have been made to implement necessary reforms. With a deadline set for October 2024, the government faces pressure to effectively improve its anti-money laundering and counter-terrorist financing frameworks to avoid severe financial repercussions.
Original Source: thenewsmill.com
