Government tightens screws on cooperatives to exit FATF grey list
Summary
The Nepalese government has intensified regulation of cooperatives to comply with FATF anti-money laundering standards and exit the grey list while addressing financial mismanagement risks in the sector.
Key Points
- The government has directed cooperatives to submit detailed reports under anti-money laundering laws to meet FATF standards.
- The Ministry of Federal Affairs and General Administration and the Department of Cooperatives are monitoring cooperatives for risk of mismanagement.
- Nepal was placed on the FATF grey list again due to failure to fully implement legal and structural reforms to combat financial crimes.
- Regulating cooperatives is seen as a necessary step, but non-profit organizations are also involved in money laundering risks according to experts.
