Nepal Remains on FATF Grey List
Summary
Nepal remains on the FATF grey list due to insufficient measures against money laundering, impacting foreign trade costs, remittances, and foreign investment.
Key Points
- Nepal has been continued on the FATF grey list for about 15 months since February 21, 2081 BS due to insufficient legal arrangements and implementation against money laundering.
- Being on the grey list increases costs and delays in foreign trade transactions due to reduced trust from foreign banks.
- Remittances to Nepal and fees for Nepalis going abroad for studies have become more costly due to the grey list status.
- Foreign direct investment and foreign aid, especially concessional loans and grants, have been negatively impacted by Nepal's position on the grey list.
