Nepal Targets Exit from FATF Grey List Within a Year: Finance Minister
Finance Minister says Nepal will complete all required reforms within a year to exit the FATF grey list, strengthening financial credibility and investment confidence.
Nepal is aiming to exit the Financial Action Task Force (FATF) grey list within the next year, with the government committing to complete all remaining reforms ahead of schedule, according to Finance Minister Rameshwar Prasad Khanal.
Speaking at the National Anti–Money Laundering Day 2082 programme held under the theme “Anti–Money Laundering: Transparency and Financial Good Governance,” the finance minister said all concerned sectors and institutions must act with responsibility to ensure Nepal’s timely removal from the grey list.
Khanal stressed that the reform process is not being driven by external pressure from the international community, but by Nepal’s own objective to strengthen institutions, eliminate corruption, enhance transparency, and improve overall economic governance. He added that the ongoing reforms related to anti–money laundering and counter–terrorist financing would not impose additional financial burdens or unnecessary costs on the economy.
Nepal was placed on the FATF grey list due to strategic deficiencies in its anti–money laundering framework, which has also affected investor confidence. According to the finance minister, weaker trust in the financial system has been one of the reasons foreign direct investment has fallen short of expectations.
Referring to recommendations issued by Financial Action Task Force and the Asia Pacific Group, Khanal noted that Nepal is required to complete specific reforms by January 2027. He said progress has already been made over the past year, and the government is now focused on completing the remaining tasks within the next 12 months, with an expectation that all reforms will be finalized by the end of 2026.
The finance minister also emphasized the need to strengthen investigation, prosecution, and enforcement mechanisms related to money laundering cases. He called for building strong, evidence-based cases and ensuring swift confiscation of illegally acquired assets to make the system more effective and credible.