Nepal’s Finance Minister Bishnu Paudel asserts that the country will exit the FATF grey list for money laundering and terrorist financing before the two-year deadline. He attributes its inclusion to the previous government and is committed to reforms. The FATF has placed Nepal on a two-year clock to rectify deficiencies to avoid further repercussions.
Bishnu Paudel, Nepal’s Finance Minister, has assured that the nation will exit the Financial Action Task Force (FATF) grey list concerning money laundering and terrorist financing prior to the two-year deadline. Addressing lawmakers, he attributed the country’s inclusion on the list to prior government inaction. He affirmed the government’s commitment to fulfilling the necessary requirements to achieve delisting within the allocated timeframe, emphasizing that the current administration cannot be held solely accountable for the situation.
In his statements, Minister Paudel committed to providing further details through a white paper in the near future. He expressed confidence that Nepal would not utilize the full two years allotted for improvements and would be able to successfully restore its status before the deadline. This instance marks the second occasion Nepal has been placed on the FATF grey list, with previous placement occurring from 2008 to 2014. The FATF’s recent plenary in Paris, from February 17-21, resulted in Nepal’s current status as part of a group subject to increased monitoring.
Countries on the grey list are defined as having strategic deficiencies in their anti-money laundering (AML) and counter-terrorist financing (CFT) systems. They are expected to enhance legislation and implement serious reforms within two years to avoid more severe consequences, such as entering the black list. Nepal’s continued presence on the grey list is due to insufficient action in addressing necessary legal and structural reforms, despite some progress in legislation.
The FATF has set a deadline for Nepal to comply with its standards by October 2024, following a July 2023 extension. However, the organization has indicated that Nepal has not adequately resolved the existing deficiencies. To effectively exit the grey list, the Nepali government must rigorously enforce measures aimed at managing illegally acquired assets while undertaking necessary reforms in its financial governance.
In conclusion, Finance Minister Bishnu Paudel has expressed optimism that Nepal will successfully remove itself from the FATF grey list ahead of the two-year deadline. Despite previous setbacks attributed to past administrations, the current government is resolute in its commitment to fulfilling the required reforms. The situation necessitates prompt and strict measures to enhance legislation and combat money laundering and terrorist financing effectively. Failure to address these issues could lead to more serious international financial implications.
Original Source: thenewsmill.com
