Nepal’s Finance Minister Bishnu Paudel stated that the country aims to exit the FATF grey list within the two-year deadline, attributing its inclusion to prior government failures. He announced that a white paper will be presented to parliament detailing the government’s strategies to achieve compliance and stressed the urgency of reforms due to the risk of falling onto the black list.
Bishnu Paudel, Nepal’s Finance Minister, has committed to removing Nepal from the Financial Action Task Force (FATF) grey list for money laundering and terrorist financing before the two-year deadline. During a parliamentary session, he attributed the current listing to the previous government’s failures. Minister Paudel emphasized the government’s dedication to completing necessary procedures and expressed confidence in achieving an early exit from the grey list.
Paudel stated, “We are under intensive monitoring, which in commonly understood language is called the grey list. The government is committed; within the given time period we will complete all the procedures that are designated and will be out from the list.” He also indicated that he would present a white paper to parliament soon, providing more details on the government’s approach to resolve the issues at hand.
This is the second instance of Nepal being placed on the FATF grey list, the most recent decision occurring during the plenary meeting in Paris from February 17 to 21. Previously, Nepal was on the list from 2008 to 2014 and must undertake significant financial sector reforms within two years to avoid being placed on the black list, which would result in stricter international sanctions.
The FATF update announced on February 21 included Nepal among jurisdictions requiring increased monitoring due to strategic deficiencies in their anti-money laundering (AML) and counter-terrorist financing (CFT) efforts. Nations on the grey list must enhance legislation, implement reforms, and combat illicit financial activities within the stipulated two years to remediate their status.
Nepal’s inclusion is attributed to inadequacies in implementing vital reforms, despite progress in legislation. The country has until October 2024 to meet FATF standards. Recent evaluations revealed that Nepal had not adequately addressed these deficiencies, resulting in calls for stronger enforcement against illegal assets management to successfully exit the grey list.
In summary, Finance Minister Bishnu Paudel assured that Nepal will exit the FATF grey list for money laundering and terrorist financing ahead of schedule. He attributed the current situation to the previous administration and emphasized the government’s commitment to making the necessary reforms. Nepal has a deadline of October 2024 to meet FATF criteria, and must intensify its efforts to manage illicit assets and revamp its financial sector to avoid further sanctions.
Original Source: thenewsmill.com
