Kathmandu. Finance Minister Rameshwor Prasad Khanal has said that all sectors and agencies should be responsible to take Nepal out of the ‘grey list’ of the Financial Action Task Force (FATF) on the issue of anti-money laundering at the earliest.

Addressing the National Day Against Money Laundering Prevention of Money Laundering: Transparency and Fiscal Governance, 2082 organized here today, Minister Khanal stressed the need to complete all necessary reforms before the deadline and take Nepal out of the grey list within a year.

He clarified that the reform measures are not going to be implemented by the international community or putting pressure on Nepal, but the process has been pursued with the objective of making its own institution corruption-free, transparent and well-governed and strengthening the economy.

He also said that the reform efforts being made to eradicate money laundering would not create additional financial liability or unnecessary cost. Stating that the foreign investment has not come as per the expectation as one of the reasons for the lack of expectation, he said that the investment climate should be improved through reform.

Stating that the FATF and the Asia Pacific Group had suggested various issues to be improved by January 2027, Khanal said that some reforms were made in the last one year and the remaining reforms needed to be completed within the next one year. He expressed hope that all reforms would be completed by the end of 2026.

Stressing on the need of making the process of investigation, prosecution and action against the cases related to money laundering effective, Finance Minister Khanal said that arrangements should be made to confiscate the property immediately by preparing a strong case with evidences.

Suspecting that there was a problem related to transparency not only in the financial market but also in the capital market, he said that the provision of commercial transaction of more than Rs 500,000 was implemented only through the banking system from January 1, 2018. Although it is said that the private sector has created problems, the limit of cash transactions will not be increased, said Khanal.

On the occasion, Minister for Law, Justice and Parliamentary Affairs, Anil Kumar Sinha, underscored the need to address the legal, policy and institutional challenges seen across the globe more effectively for the financial fairness and good governance of Nepal. He said that the present situation is not only a challenge but also an opportunity for self-assessment and further improvements.

Stating that legal and institutional reforms were underway, Minister Sinha said the time has come to focus on effective implementation. Stating that an action plan to be taken by January 2083 to get out of the grey list has already been finalized, he stressed that all bodies and sectors should fulfill their responsibilities for its implementation.

Similarly, Attorney General Sabita Bhandari said Nepal has made clear policy commitments at the international level to combat money laundering and special attention has been given to the formulation of related laws and their effective implementation.

Speaking on the occasion, Attorney General Bhandari stressed the need to implement a risk-based monitoring and regulation system as per the FATF standard. Traditional investigation method was not enough, she said, underlining the need of making investigation and prosecution process more effective, evidence-based and result-oriented.

She said that the tasks that the Attorney General’s Office has to do to get out of the grey list are being done effectively.