EXCLUSIVE: Nepal faces black listing warning as anti-money laundering reforms stall
Summary
The Asia/Pacific Group (APG) has warned Nepal that it risks blacklisting due to slow progress on anti-money laundering reforms ahead of a key 2026 review. The government is urged to demonstrate meaningful action to meet FATF directives.
Key Points
- The Asia/Pacific Group (APG) warned Nepal of potential blacklisting if progress on anti-money laundering reforms is not shown by September 2026.
- Nepal was placed on the FATF grey list in February 2025 with 15 directives to fulfill by 2027, but progress has been slow due to political disruptions.
- The APG delegation, led by senior official David Shannon, met multiple government agencies stressing urgency and dissatisfaction with Nepal's reform pace.
- Finance Minister Swarnim Wagle prioritizes exiting the grey list and improving financial crime prosecutions, with recent arrests illustrating increased enforcement efforts.
