Kathmandu, Bhadra 04 – The Government has directed all ministries and public agencies to expedite reform process to take Nepal off the FATF grey list.
The meeting at the secretary level convened by Chief Secretary Govinda Bahadur Karki requested the related agencies to complete the work assigned to them in fixed deadlines. They are also required to report their progress to the Office of the Prime Minister and Council of Ministers. In February 2025, Nepal was moved to the Financial Action Task Force (FATF) grey list because of its vulnerabilities regarding the prevention of money laundering and countering the financing of terrorism (CFT).
The government has fixed a deadline of mid-February 2027 to finish the necessary reforms. The subject matter of the work covers a number of areas related to financial crimes, including banks and cooperatives, banking offences, real estate, precious metals, corruption, tax evasion, human trafficking, smuggling and shell companies for money laundering.
The government wants agencies to enhance supervision, investigation, prosecution and enforcement in these areas. The Prime Minister's Office will be tracking the action plan to see whether the ministries and agencies are able to adhere to their deadlines. The government has also announced that Fiscal Year 2026-27 will be “Year of Lawmaking and Reform.”
It plans to amend the outdated laws, scrap out unnecessary laws and add new laws wherever requirement. Full implementation of the reforms has the potential to remove Nepal from the FATF grey list and enhance the financial stability and international reputation of the country's financial system.
Source: The Kathmandu Post
