Nepal Government Orders All Cooperatives to File Anti–Money Laundering Reports Online
The Government of Nepal has mandated all cooperatives nationwide to submit anti–money laundering (AML) compliance reports online, as part of efforts to strengthen oversight and exit the FATF ‘grey list’.
The Government of Nepal has issued a directive requiring all cooperative societies across the country to submit their anti–money laundering (AML) compliance reports online. The decision follows a circular from the Department of Cooperatives, which the Ministry of Federal Affairs and General Administration has relayed to all local governments for implementation.
The move comes as part of Nepal’s efforts to exit the Financial Action Task Force (FATF) ‘grey list’. Under the National Strategy and Action Plan for the Prevention of Money Laundering and Terrorist Financing (2081–82 to 2085–86), the government is working to strengthen regulation and supervision in the cooperative sector.
As per Section 7 (p) (2) of the Money Laundering Prevention Act 2064, risk-based monitoring of cooperatives will be conducted. All cooperatives must submit their FY 2081/82 reports via the designated online form by the end of Shrawan.
The Ministry has instructed all rural municipalities and municipalities to ensure cooperatives in their jurisdiction meet the deadline. The government expects this policy to curb non-transparent financial transactions and enhance the risk-based monitoring system in the cooperative sector.