Kathmandu [Nepal], October 22 – Nepal must accelerate reforms to combat money laundering and financial crimes if it is to exit the Financial Action Task Force (FATF) grey list by January 2027 with only two of its 15 prescribed action points fully completed as of September 2026.
According to the progress report, three action points have been largely completed, six partially addressed and three remain unaddressed highlighting the need for faster implementation and measurable results.
The FATF meeting is scheduled to take place in Paris, France from October 28 to 30. Representatives from more than 200 jurisdictions and observer organisations in the global FATF network are expected to attend. Nepal will be represented by a delegation led by Nepal Rastra Bank Deputy Governor Dirgha Rawal.
Nepal has introduced institutional and policy reforms including establishing a dedicated Anti-Money Laundering Supervision Department at the central bank and approving a national risk assessment. Some measures to curb terrorist financing have also been introduced.
However, effective enforcement remains a major challenge. Key priorities include strengthening supervision of cooperatives and other high-risk sectors, improving financial crime investigations and prosecutions and enhancing oversight of casinos, real estate and precious metals businesses.
Nepal must also demonstrate tangible results in identifying, freezing and confiscating criminal assets before the January 2027 deadline.
