APG warns Nepal over weak anti-money laundering progress, flags risk of further downgrade from grey list
Summary
The Asia/Pacific Group on Money Laundering (APG) has warned Nepal over inadequate progress in anti-money laundering reforms, threatening potential blacklisting if improvements are not made. Key shortcomings include regulation, investigation, and enforcement efforts across multiple sectors.
Key Points
- The APG delegation warned Nepal that insufficient progress on anti-money laundering measures risks blacklisting rather than removal from the grey list.
- Nepal has made meaningful progress on only 9 of 15 FATF action plan items; others remain partially implemented despite claims of improvements.
- The APG raised concerns about recent ordinance amendments affecting investigative authority and weak enforcement efforts.
- Grey listing has increased suspicious financial activity reports and imposed economic consequences, including higher transaction costs and potential reduced foreign investment.
