Following Nepal’s re-inclusion on the Financial Action Task Force (FATF) “grey list” (increased monitoring), the Prime Minister’s Office (PMO) issued strict operational directives to government secretaries, regulatory bodies, and law enforcement agencies to accelerate compliance.
The goal of the directive is to meet the action plan targets set by the FATF and the Asia/Pacific Group on Money Laundering (APG) before deadline timelines to avoid further economic penalties or the threat of blacklisting.
Key Action Plan Priorities
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Targeting High-Risk Sectors: The directive orders regulatory agencies to enforce strict risk-based supervision across commercial banks, high-risk financial cooperatives, real estate developments, casinos, and dealers in precious metals and stones.
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Cracking Down on Informal Channels: Enforcement teams are instructed to target illegal Money Value Transfer Services (MVTS) and hundi networks.
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Strengthening Prosecutions & Capacity: Law enforcement agencies, including the Department of Money Laundering Investigation (DMLI) and the Financial Information Unit (FIU), have been directed to increase the volume and speed of financial investigations, money laundering prosecutions, and asset confiscation.
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Preserving Foreign Investment & Remittances: The government emphasizes that resolving these institutional gaps is critical to lowering overseas transaction costs, protecting international credit ratings, and preventing disruptions to foreign direct investment.