Nepal has been placed on the FATF grey list, leading to political turmoil and calls for Prime Minister KP Sharma Oli’s resignation. This marks Nepal’s second occurrence on the list since 2008. The FATF cited Nepal’s inadequate progress in implementing legal and policy reforms to combat financial crimes, with potential consequences if not addressed within two years. In related news, Laos joins the grey list while the Philippines exits it.
The recent inclusion of Nepal in the Financial Action Task Force (FATF) grey list has caused significant political unrest within the nation. The opposition party, CPN-Maoist Centre, is now calling for the resignation of Prime Minister KP Sharma Oli, marking only the second instance of Nepal being placed on this list, which highlights countries with inadequate anti-money laundering and counter-terrorism financing frameworks. Previously, Nepal was on the grey list from 2008 to 2014.
During a session in the House of Representatives, opposition Member of Parliament Madhav Sapkota criticized the government for its failure in preventing this designation. He urged Prime Minister Oli to step down, expressing deep concern over the implications of being on the grey list, which includes potential international transaction barriers if reforms are not implemented within a two-year timeframe.
The FATF announced its decision during a plenary meeting in Paris, stating that Nepal had not successfully executed the necessary legal, structural, and policy reforms to combat financial crimes. Additionally, Nepali Congress lawmaker Arjun Narshingh KC suggested the demonetization of NPR 500 and 1000 banknotes to curb illicit financial activities, advocating for parliamentary debates and investigations into corruption to improve Nepal’s international standing.
In the latest FATF update, while the Philippines has successfully exited the grey list, both Laos and Nepal have been added. This development may be disappointing for South Africa, which had been advocating for its removal from the list. The FATF also confirmed the continuation of its suspension of Russia’s membership following its invasion of Ukraine.
In summary, Nepal’s recent placement on the FATF grey list has instigated political calls for the resignation of Prime Minister KP Sharma Oli due to perceived failures in governance. Without addressing financial crime reform, Nepal risks further international sanctions in the upcoming years. Meanwhile, the addition of Laos to the grey list and the Philippines’ removal highlight shifting dynamics within the FATF framework.
Original Source: resonantnews.com
