Kathmandu. The International Financial Action Task Force (FATF) has issued a seven-point suggestion to Nepal to get out of the grey list.

In February 2025, Nepal made high-level political commitments to the FATF and the Asia Pacific Group (APG) to strengthen the effectiveness of the anti-money laundering mechanism.

It has not been removed from the grey list because it is not complete.

Nepal was again on the FATF’s grey list in February. Before that, Nepal was in the grey list in 2011 and was eliminated in 2014.

Money-money laundering, terrorist financing, and understanding of risks should be improved, and regulatory weaknesses should be corrected to prevent financing of terrorist activities and weapons of mass destruction.

Banks and financial institutions, high-risk cooperatives, casinos, dealers in precious metals and stones (DPMS) and real estate sectors should be monitored effectively.

It has suggested identifying and taking effective regulation and action against illegal service providers involved in money laundering including hundi without hindering financial inclusion.

Likewise, it has suggested establishing a powerful body to investigate money laundering, enhancing capacity and coordination, increasing the number of money laundering investigation and prosecution.

In accordance with the risk profile, procedures for identifying, monitoring, withholding, confiscating and if necessary should be effectively implemented in the identification of assets used in criminal income and criminal transactions.