Curb Growing Number Of Financial Crimes

Nepal’s re-listing on the Financial Action Task Force (FATF) “grey list” for the second time since 2014 highlights difficulties in combating money laundering and financing terrorism. The reversal occurs despite ongoing efforts to improve, including marking National Anti-Money Laundering Day on January 27, 2025, and amending laws to close legislative loopholes. However, shortcomings in counter-terrorism financing and anti-money laundering policy made the re-listing necessary. The FATF has given Nepal two years to implement necessary improvements, or it may be blacklisted, which would damage foreign investment, escalate transaction costs, and slow down the flow of foreign aid.