Govt putting efforts to remove Nepal from FATF grey list

 Kathmandu, Aug. 5 

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel said that the government is undertaking a coordinated and intensive effort to remove Nepal from the grey list of the Financial Action Task Force (FATF) ahead of schedule.

Responding to lawmakers' queries at the House of Representatives, he expressed confidence that Nepal’s structured and focused efforts would yield results before the deadline. 

According to him, the laws and action plans relating to money laundering prevention have not been introduced to be stored away, but are aimed at producing meaningful outcomes through effective implementation.

DPM Paudel informed the House that the Anti-Money Laundering and Promotion of Business Environment (Amendment) Act, 2080 has amended 19 different laws in a bid to strengthen Nepal’s legal framework and improve compliance with international standards. 

The Money Laundering Prevention Regulation, 2081 has also been enforced and is currently under implementation.

According to him, the government is also executing the national strategy and action plan for the prevention of money laundering and terrorist financing, covering the period from 2024/25 to 2028/29. 

Likewise, in a bid to accelerate Nepal’s exit from the FATF's grey list and prevent similar scrutiny in the future, the Directive Committee has approved and implemented the Detailed Corrective Action Plan, 2082. This plan is being reported to the Asia Pacific Group (APG) in a format prescribed by the regional body, via the Financial Intelligence Unit (FIU), DPM Paudel said.

He further informed the House that the government has enforced a new directive this year targeting dealers of precious metals and high-value items, as part of efforts to crack down on money laundering and terrorist financing. Similar directives have also been implemented for the casino sector and the real estate sector with each requiring greater oversight and compliance from businesses operating in these areas.

DPM Paudel said that in addition to legislative reforms, the government has strengthened institutional coordination as well. Under the law governing anti-money laundering, a Directorate Committee and a Coordination Committee have been formed. 

These committees have further established four dedicated Implementation Coordination Mechanisms to carry out coordination, facilitation, monitoring, and guidance of action plans across the country during the entire period of the 2024 to 2029 strategy.

Published in The Rising Nepal daily on 6 August 2025.