WILL NEPAL MEET ITS AML CHALLENGES, AND SUCCEED IN BEING REMOVED FROM THE FATF GREY LIST IN 2027?

If you have been following recent political developments in the Federal Democratic Republic of Nepal, you know that the country has gone through rioting, and an election of late, while its remittance-assisted economy continues to labor under the consequences of its second placement on the Financial Action Task Force Grey List. Unsolved problems with widespread money laundering in its casino, real estate, gold trade, and non-Governmental Organisations (NGO) sectors, where industries require comprehensive AML training to convince the FATF that effective compliance is in place, have not yet been conducted, primarily due to severe budgetary constraints.

Nepal needs to focus on AML/CFT programs that will demonstrate to the regulator it has upgraded both compliance in the private sector, to the level of Banking Best Practices, and adequate oversight from governmental agencies which have heretofore been underfunded and ineffective, in order to persuade the FATF that there has been significant reform, across the board. We hope and trust this will occur, now that there is a sufficient degree of political stability. 2027 will be here sooner than you think, and whether Nepal can show sufficient progress at this time, so as to justify FATF action, depends upon the government's resolve and action.