The Financial Action Task Force (FATF) said Nepal has not made sufficient progress on reforms despite earlier political commitments, and has retained the country on its grey list of jurisdictions under increased monitoring.
FATF said Nepal needs to fully implement its action plan, including stronger supervision of banks, cooperatives, casinos, and real estate sectors, as well as action against illegal hundi operators who facilitate informal money transfers.
Remaining on the grey list can affect Nepal's access to international financial systems and may increase the cost of cross-border transactions, including remittances, which reached NPR 1.92 trillion in the first ten months of the current fiscal year.