First published on The Kathmandu Post
https://kathmandupost.com/national/2025/02/22/it-s-official-nepal-falls-back-into-fatf-grey-list
Nepal has been placed on the Financial Action Task Force (FATF) grey list for the second time, following a February 17-21 plenary decision in Paris. Nepal previously exited the grey list in 2014 after amending its Anti-Money Laundering Act but now faces renewed scrutiny due to enforcement lapses.
Grey-listing risks reduced foreign investment, higher transaction costs, and challenges in securing international aid. Nepal’s reliance on remittances (22% of GDP) may face disruptions due to stricter due diligence by foreign banks. Failure to exit within two years could lead to blacklisting, isolating Nepal from global financial systems.
Finance Minister Bishnu Paudel acknowledged the setback but vowed to expedite compliance, stating, “We will emerge from the grey list before the given time,” citing an approved action plan. Nepal must now submit a compliance plan within three months, with progress reviewed quarterly.
