Nepal Aims to Exit FATF Grey List Ahead of Deadline, Asserts…

Nepal’s Finance Minister Bishnu Paudel has pledged that the country will exit the FATF grey list for money laundering and terrorist financing before the two-year deadline. He attributed Nepal’s inclusion to the previous administration and outlined the government’s commitment to enact necessary reforms promptly. The FATF’s decision places Nepal under increased scrutiny, requiring immediate corrective measures to prevent further sanctions.

Nepal’s Finance Minister, Bishnu Paudel, has asserted that the nation will extricate itself from the Financial Action Task Force (FATF) grey list for issues concerning money laundering and terrorist financing prior to the stipulated two-year deadline. During a session with lawmakers, he attributed the country’s grey list status to the prior government’s shortcomings.

Minister Paudel emphasized the current government’s commitment to fulfilling the required procedures to remove Nepal from the FATF list. “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 list. Though, this government only was not responsible for the country being enlisted in the grey list,” he stated.

He indicated that he will present a white paper to Parliament soon, providing more detailed information regarding the government’s strategies. According to Paudel, “In order to make a comeback, the government will take serious and sincere steps which will be supported by the results. We still have time of two years but we won’t be using it fully, we are confident that our country’s name will be out of the grey list early.”

This marks Nepal’s second inclusion in the FATF grey list, a decision announced during the plenary session held in Paris from February 17-21. Previously, Nepal was on the grey list from 2008 to 2014 and is now required to reform its financial sector within two years or risk being classified as a higher threat jurisdiction with greater barriers to international transactions.

The FATF categorizes the grey list as “jurisdictions under increased monitoring,” pertaining to countries with crucial deficiencies in their anti-money laundering (AML) and counter-terrorist financing (CFT) frameworks. The listing serves as a timeframe for improvements in legal and policy measures to address illegal financial activities.

Despite legislative advancements, Nepal’s inclusion in the grey list is largely due to its inadequate implementation of necessary reforms. The FATF has set a deadline of October 2024 for Nepal to comply with its standards after issuing an extension in July 2023.

In conclusion, Finance Minister Bishnu Paudel has expressed a strong commitment for Nepal to leave the FATF grey list before the established deadline. He has attributed current challenges to previous governmental administrations while outlining upcoming strategies to address deficiencies in the nation’s financial monitoring and legal frameworks. The effective execution of rigorous reforms is essential for Nepal to achieve compliance and avoid further classification as a high-risk jurisdiction.

Original Source: thenewsmill.com