Kathmandu. Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has said the government would work without leaving any stone unturned to bring Nepal out of the grey list.

Responding to a question raised by lawmakers in the National Assembly, Finance Minister Poudel said, “We are not only coming out of the grey list, but are also moving ahead with the work so that it will never be in the grey list again.” The results will come gradually. Finance Minister Poudel said nepal would be removed from the grey list two years ago.

Finance Minister Poudel’s reply to the questions put forth by the lawmakers:

Question: Isn’t the government trying to make a poor country like ours suffer and keep our economy in its clutches? How does it counter or defend it?

Answer: Economic crime control and good governance are the duties and goals of every country. Controlling money laundering and terrorist financing is a global joint effort. Controlling large and serious economic crimes that can challenge the state itself is a matter of collective concern in Nepal and all countries of the world.

Question: Why did Nepal fall in the grey list?

Answer: Nepal has been placed on the grey list due to lack of adequate regulation, supervision, investigation, prosecution and confiscation of assets acquired from crime, as the third phase of international mutual assessment on prevention of money laundering was completed in 2022-23. Another reason for this is that the concerned bodies are unable to work on time due to lack of adequate legal arrangements as the bills in this regard have been pending for a long time during the previous and current parliaments. The laws were passed on April 30, 2080 and the concerned bodies have already taken necessary action.

Question: Because of being on the grey list, the reputation of the country that has amassed wealth by supporting terrorist activities has not been tarnished?

Answer: The Third Phase of International Mutual Assessment on the Prevention of Money Laundering in Nepal 2022/23 states that Nepal’s position in terrorist activities is not risky and only minor reforms are needed. This need has been met by the amendment of 19 different laws made on April 30, 2080. To make the implementation effective, the concerned agencies are carrying out the work with a strategic action plan. The government is clear that the country being on the grey list for any reason is not appropriate from the economic, financial and prestige point of view and the government has already formulated a corrective action plan from 2082 to get out of the grey list as soon as possible.

Question: What are the difficulties in international trading? Will foreign imports and exports be affected or not? If so, what will be the impact on the Nepali economy?

Answer: The government has formulated a corrective action plan since 2082 to reduce the impact of the grey list as the country’s inter-country financial transactions, remittance flow, inter-country business, foreign investment, etc. may be adversely affected gradually due to the grey list.

Question: How can investments such as foreign loans, grants, aid be affected?

Answer : The government is sensitive to reduce the impact of the grey list as it may adversely affect the country’s foreign loans, grants, assistance, etc.

Question: What policies and programs do the government have to prevent and remove from the grey list the impact on economic, financial and diplomatic sectors?

Reply: The Government of Nepal is implementing the following policies and programs to get out of the grey list:

• The Act, 2080 amended some acts related to prevention of money laundering and promotion of business environment, amending 19 different acts.

• Prevention of Money Laundering Rules, 2081 has come into force.

• The National Strategy and Action Plan (2081/82-85/086) on prevention of money laundering and terrorist financing is under implementation.

• In order to ensure effective implementation to bring the country out of the grey list as soon as possible and not to be included in such a list in the coming days, the Board of Directors has approved the Detail of The Rapid Corrective Activities, 2082 to be removed from the Grey List.

• The progress report in accordance with the reporting pattern of the rerating received from the Asia Pacific Group (APG) will be submitted through the Financial Intelligence Unit (FIU).

• Directive issued to the commodity traders (index organizations) dealing in precious metals or commodities regarding prevention of money laundering and financing of terrorist activities, 2082 is in force.

• Directive issued to casino entrepreneurs (index organizations) regarding prevention of money laundering and terrorist financing, 2082 is in force.

• Directive 2082 issued to the Real Estate Transaction Index Organization regarding prevention of money laundering and financing of terrorist activities is in force.

• Coordination, facilitation, monitoring and direction is being carried out by forming four implementation coordination mechanisms (regulatory, research coordination, counter-terrorism and implementation coordination and facilitation) for a period of five years (2081/82-2085/086) in addition to the Directive Committee and Coordination Committee constituted by the Law on Prevention of Money Laundering.

• The budget for the current fiscal year 2082/83 has made the following provisions:

Nepali businessmen or companies will be allowed to set up processing factories by exporting sales branches or semi-processed materials abroad. Legal provisions will be made to invest up to twenty-five percent of the annual income from such exports abroad. Fifty percent of the profit earned from such business will have to be returned to the country. Arrangements will be made for the Investment Board to approve the investment made abroad.

Question: Auditor General and National Natural Resources and Finance Commission Are two important constitutional commissions associated with the Ministry of Finance. What plans does the Ministry have to make these commissions effective? What is lacking in the legal framework or efficiency to reduce arrears and maximize the use of natural resources?

Answer: Works being done by the Ministry to make the Office of the Auditor General effective:

• A new organization and management survey has been proposed to establish seven provincial offices under the Office of the Auditor General.

• Necessary budgetary provision has been made to enhance the professional capacity and autonomy of the auditors.

• Nepal Audit Management System is in operation to make the audit and audit of arrears effective and work is being done to interlink other finance management systems with that system.

• Works have been carried out as mentioned in the budget statement to improve the public procurement system, legal clarity and formulation of expenditure standards and action plan to reduce arrears. Kathmandu: The economic procedure and financial responsibility act, 2076 BS has been amended to check and deduct the arrears pending for the last three years.

Works being undertaken by the Ministry to make the National Natural Resources and Finance Commission effective:

• The first strategic plan of the National Natural Resources and Finance Commission 2079/080 2083/084 is under implementation.

• The government has given high priority to institutional strengthening of the National Natural Resources and Finance Commission.

• Study, research and analysis of macroeconomic, social and financial indicators carried out by the National Natural Resources and Finance Commission has been given priority.

• Financial equalization grants, revenue and royalties are distributed and transferred to the provincial and local levels as recommended by the National Natural Resources and Finance Commission. A Financial Federalism Coordination Division has been set up at the Ministry of Finance to coordinate and facilitate this work.

Question: {{TAG_OPEN_strong_72 TAG_CLOSE_strong_72}} Rs 200 million allocated for the Welfare Promotion and Development Authority of the Dalit community from the Rostrum of the National Assembly in the month of Bhadra is in the Ministry of Finance. He had said that it will be implemented through the Ministry of Federal Affairs or Women, under what circumstances is it being implemented now?

Answer: • The question presented relates to the implementation of the budget for the last financial year 2081/82. As mentioned in the question, rs 200 million allocated for the promotion of the welfare of the Dalit community could not be spent for various reasons.

• In the current fiscal year 2082/83, “Bhagat Sarbajit Entrepreneurship Development Program” will be launched to create employment and income generation opportunities by preserving the traditional skills, arts and professions of the Dalit community. Gold, silver, bronze, copper, iron, leather, wood, stone and other materials will be produced and marketed using modern technology. An amount of Rs 500 million has been allocated for this purpose in the current fiscal year. If a concrete program is proposed by the concerned agency and there is a demand for release, the necessary amount can be provided from that budget.