Nepal has been placed back on the FATF grey list, causing political upheaval as opposition parties demand the resignation of Prime Minister KP Sharma Oli. This decision results from Nepal’s failure to implement necessary reforms against money laundering and terrorism financing. Proposed measures include demonetizing large banknotes to combat illicit financial activities. The FATF also updated its status on other countries, removing the Philippines while adding Laos and Nepal.
Nepal has once again been placed on the Financial Action Task Force (FATF) grey list, prompting political unrest within the country. The opposition party, CPN-Maoist Centre, is calling for the resignation of Prime Minister KP Sharma Oli, highlighting the government’s failure to address deficiencies in anti-money laundering and counter-terrorism financing measures. This marks the second occurrence of such a designation for Nepal, previously listed from 2008 to 2014.
During a recent session of the House of Representatives, opposition MP Madhav Sapkota condemned the government’s inability to avert this situation and made calls for the Prime Minister’s resignation. The FATF, during its recent plenary meeting from February 17–21 in Paris, emphasized Nepal’s lack of effective implementation of crucial reforms to combat financial crimes as the reason for the grey listing. Failure to rectify these issues within a two-year timeframe could lead to stricter international transaction restrictions and possible sanctions.
Furthermore, Arjun Narshingh KC, a member of the Nepali Congress, expressed support for demonetizing NPR 500 and 1000 banknotes as a strategy to mitigate illicit financial activities. He advocated for comprehensive parliamentary discussions and thorough investigations into corruption to enhance Nepal’s international reputation.
In the latest FATF update, it is noteworthy that while Nepal and Laos have been added to the grey list, the Philippines has successfully been removed. This development may also be disheartening news for South Africa, which has been striving for the removal of its designation. Additionally, the FATF continues to uphold the suspension of Russia’s membership following its invasion of Ukraine.
The inclusion of Nepal on the FATF grey list has sparked significant political controversy, with calls for the Prime Minister’s resignation and proposed measures to combat financial crimes. This situation underscores the critical need for effective reforms in Nepal’s financial sector to maintain its international standing. As the FATF issues further warnings, the implications for international transactions could be substantial if these deficiencies are not adequately addressed.
Original Source: resonantnews.com
