FATF Adds Nepal to Grey List Over Money Laundering Concerns

Nepal has been added to the grey list by the Financial Action Task Force (FATF) because it hasn’t done enough to fight money laundering and terrorist financing.

This decision was made during a meeting in Paris from February 19 to 21. Along with Nepal, Laos was also placed on the grey list, while the Philippines was taken off.

FATF pointed out that Nepal needs to improve in seven areas to better tackle money laundering and terrorist financing. These areas include understanding the risks, overseeing high-risk sectors like banks and casinos, stopping illegal money transfer services, and improving investigations and actions against money laundering.

Although Nepal has made some progress since August 2023, like better cooperation on legal matters and strengthening the Financial Investigation Unit, FATF says more work is needed. Nepal has promised to work with FATF and the Asia-Pacific Group to address these problems.