FATF eyeing up Nepal's financial performance: Is blacklist on the cards?
Summary
The Financial Action Task Force (FATF) has continued Nepal on its grey list due to insufficient progress in financial reforms, raising concerns about a possible blacklist placement amid political instability and corruption.
Key Points
- FATF plenary meeting in Paris decided to continue Nepal's grey list status due to lack of progress in financial reforms.
- Nepal was placed on the FATF grey list in February 2025 with a two-year timeline to enact reforms, but has failed to meet required standards so far.
- Political instability and corruption, including questionable acquittals of high-profile individuals like Rabi Lamichhane, have undermined Nepal's financial credibility.
- If Nepal fails to improve its financial sector compliance, it risks being placed on the FATF blacklist within seven months.
