Jeopardising financial standing: Slipping towards FATF blacklist
Summary
Nepal remains on the FATF grey list due to insufficient reforms in anti-money laundering and counter-terrorist financing measures, with government actions and political interference risking a downgrade to the blacklist.
Key Points
- The FATF has placed Iran, Myanmar, and North Korea on its blacklist due to deficiencies in anti-money laundering and counter-terrorist financing measures.
- Nepal was downgraded to the FATF grey list in February 2025 and was given a two-year deadline to improve its financial regulatory framework.
- Recent government actions, including leniency in high-profile money-laundering cases and political interference, have raised concerns about Nepal's commitment to FATF reforms.
- Failure to address these issues may lead to Nepal being blacklisted by FATF, severely impacting its economy and global financial access.
