Finance Minister Rameshore Prasad Khanal has said that removing Nepal from the Financial Action Task Force (FATF) grey list is a shared responsibility of all concerned stakeholders and authorities.
Speaking at a programme organized in the capital on Wednesday to mark National Anti-Money Laundering Day 2082 BS under the theme “Money Laundering Prevention: Transparency and Fiscal Discipline,” the finance minister emphasized the need to complete all required reform measures within a year to pave the way for Nepal’s removal from the grey list.
He clarified that the government’s economic reform initiatives are not driven by international pressure, but are aimed at building corruption-free institutions, ensuring transparency and good governance, and strengthening the national economy. According to him, anti-money laundering measures do not impose unnecessary financial burdens on the country.
The minister pointed out that weak confidence in Nepal’s financial system has contributed to lower-than-expected foreign investment inflows. He stressed that creating an investment-friendly environment through structural reforms is essential to restore trust. Expressing optimism, he said the reform process could be completed by the end of 2026.
Khanal also called for greater effectiveness in investigation, prosecution, and enforcement of money laundering cases. He stressed the importance of evidence-based case preparation and timely seizure of illicit property. Raising concerns over transparency in both the financial and capital markets, he noted that a provision mandating the use of banking channels for corporate transactions exceeding Rs 500,000 has been in effect since January 15. Despite concerns from the private sector, he made it clear that the ceiling on cash transactions would not be revised upward.
Minister for Law, Justice and Parliamentary Affairs Anil Kumar Sinha echoed similar views, stating that addressing global legal, policy, and institutional challenges is crucial to ensuring financial integrity and good governance. He described Nepal’s current situation as both a challenge and an opportunity for reform, adding that an action plan has been prepared to remove the country from the grey list within a year through collective efforts.
Attorney General Sabita Bhandari said Nepal has made a firm international commitment to prevent money laundering, with priority given to the formulation and implementation of relevant laws. She stressed the need for effective, risk-based monitoring and regulation systems in line with FATF standards, noting that traditional investigation methods are inadequate. She added that her office is carrying out necessary actions assigned to it to support Nepal’s exit from the grey list.
Nepal Rastra Bank Deputy Governor Bom Bahadur Mishra warned that remaining on the grey list could lead international financial institutions to tighten transactions with Nepal, potentially creating serious social and economic consequences. He said this could also result in higher remittance costs, restrictions on international transactions, and even travel limitations for Nepali citizens.
Director General of the Department of Money Laundering Investigation, Gajendra Kumar Thakur, stressed that combating money laundering is not the responsibility of a single agency. He highlighted the involvement of more than 50 government agencies and over 80,000 indicator organizations in the sector. Thakur warned that money laundering, terrorist financing, and illegal transactions could account for three to five percent of Nepal’s GDP.
He noted that Nepal’s economy remains largely cash-based and that existing systems are inadequate due to weak regulation, limited technology, and a shortage of skilled human resources. Although laws exist, their implementation remains weak. Identifying real estate and precious metals trading as high-risk sectors, he called for risk-based monitoring, legal reforms, stronger inter-agency coordination, enhanced international cooperation, integrated information-sharing systems, and tighter oversight of the digital economy, including cybercrime control.
