Nepal orders PSPs to freeze terrorist-linked assets to exit FATF grey list
Summary
Nepal mandates payment service providers to freeze assets linked to terrorists as part of efforts to exit the FATF grey list amid rising cyber-enabled fraud and money laundering concerns.
Key Points
- Nepal requires payment service providers to freeze assets of individuals and entities flagged as terrorists by the UN or Nepal’s home ministry.
- The guidelines aim to strengthen anti-money laundering and counter-terrorist financing efforts to help Nepal exit the FATF grey list.
- Cyber-enabled fraud and money laundering cases are rising in Nepal, especially involving young people and digital transaction platforms.
- Nepal faces a two-year deadline to reform its financial sector to avoid being placed on the FATF blacklist, which would impose severe international transaction restrictions.
