Nepal has landed on the FATF grey list, causing political turmoil and resulting in calls for Prime Minister KP Sharma Oli’s resignation. The FATF highlighted Nepal’s failure to implement necessary reforms to combat financial crimes. The inclusion of Nepal and Laos comes as the Philippines is removed from the grey list, with wider implications regarding international sanctions and financial stability in Southeast Asia.
Nepal recently found itself on the Financial Action Task Force (FATF) grey list, an event that has ignited political unrest. The opposition party, CPN-Maoist Centre, has called for the resignation of Prime Minister KP Sharma Oli as a consequence of this designation. This situation marks Nepal’s second occurrence on the grey list, the previous being from 2008 to 2014, due to deficiencies in anti-money laundering and counter-terrorism financing measures.
During a recent session in the House of Representatives, opposition Member of Parliament Madhav Sapkota condemned the government’s inability to avert this classification and urged for the Prime Minister’s resignation. The FATF reached its decision during its plenary meeting in Paris from February 17 to 21, citing Nepal’s insufficient progress in implementing critical structural, legal, and policy reforms essential for combating financial crimes.
If Nepal does not effectively address these shortcomings within two years, it could face tougher restrictions on international transactions and potential sanctions. Furthermore, Nepali Congress lawmaker Arjun Narshingh KC has proposed demonetizing NPR 500 and 1000 banknotes as an effort to curtail illicit financial activities, stressing the importance of parliamentary inquiry and corruption investigations to preserve the nation’s international reputation.
In related updates from the FATF, the Philippines has successfully been removed from the grey list, while both Laos and Nepal have been newly added. This development might also disappoint South Africa, which had sought to eliminate its designation. Additionally, it remains significant that the FATF’s suspension of Russia’s membership, in light of its invasion of Ukraine, is still enforced.
Nepal’s addition to the FATF grey list has prompted serious political repercussions, with opposition demands for the Prime Minister’s resignation citing failures in financial reforms. The potential for international sanctions looms, urging immediate action against corruption. Both Laos and Nepal’s inclusion signals wider concerns in the region, while the FATF maintains strict measures against Russia amidst the ongoing geopolitical tensions.
Original Source: resonantnews.com
