Grey List Hold: FATF Says Nepal's Anti-Money Laundering Push Still Lacking
Summary
The FATF has retained Nepal on its grey list due to insufficient progress in anti-money laundering and counter-terrorism financing measures, outlining six key areas for improvement.
Key Points
- The FATF has kept Nepal on its grey list due to weaknesses in preventing money laundering and terrorism financing.
- Six specific areas need improvement for Nepal to exit the grey list, including better risk understanding and stronger oversight of financial sectors.
- Nepal's Asia Pacific Group peer body found only partial implementation of the FATF action plan as of January 2026.
- Being on the grey list may increase scrutiny and compliance costs but does not impose economic sanctions on Nepal.
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