Nepal Poised to Exit FATF ‘Grey List’ Ahead of Schedule, Says Finance Minister

Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has assured that Nepal will exit the Financial Action Task Force (FATF) ‘Grey List’ ahead of the anticipated timeline.

Speaking briefly after the FATF placed Nepal on the Grey List, Minister Poudel attributed the situation to previous delays in meeting compliance requirements. However, he expressed confidence that Nepal’s newly approved ‘Action Plan’—endorsed at the FATF meeting in Paris—would expedite the country’s removal from the list.

“This situation arose due to past failures in completing scheduled tasks on time. With the approval of Nepal’s Action Plan, we are committed to implementing it effectively and ensuring an early exit from the Grey List,” Poudel stated.

Nepal’s inclusion on the Grey List follows concerns over inefficiencies in investigating and controlling financial crimes, money laundering, and regulatory enforcement. The FATF, the global watchdog for money laundering, terrorism financing, and illicit financial activities, flagged Nepal for its shortcomings in implementing the recommendations of the Asia Pacific Group (APG) Mutual Evaluation Report (MER) from two years ago.

A senior official from the Prime Minister’s Office confirmed that the recent FATF meeting in Paris decided to keep Nepal under monitoring for the next two years. The Secretary of the Law Division, who attended the meeting, is expected to provide further details upon returning to Nepal on Monday.