Nepal still on ‘grey list’ as FATF shares its review report
Summary
Nepal remains on the FATF's grey list due to insufficient progress in addressing anti-money laundering and terrorist financing deficiencies, prompting warnings of potential blacklisting and economic impacts.
Key Points
- Nepal continues to be on the FATF's grey list due to inadequate policy and structural reforms.
- The Asia/Pacific Group on Money Laundering reviewed Nepal's compliance and noted limited progress on key action points.
- Recent amendments to Nepal's anti-money laundering laws have raised concerns with the APG delegation.
- The grey listing is increasing the costs of banking, trade, and investment, and may discourage foreign direct investment in Nepal.
