Experts have pointed out that effective investigation, prosecution and supervision are challenging to quickly remove Nepal from the "grey list" of the Financial Action Task Force (FATF), an international organization that monitors money laundering and terrorist activities.

They argue that the political leadership has neglected the investigation and implementation of laws related to money laundering and if they repeat the same mistakes, it will be difficult to get out of the "grey list" within the specified time i.e. two years. 

Looking at the priorities of the government and the speed of work of the state agencies, Experts say that it will be difficult for Nepal to get out of the "grey list" . In the beginning, all the state agencies were fired. Even if the policies are made accordingly. Now is the time to implement those policies.

The process has not been done at the speed it should have been,' said the source, 'In the first four months after being on the gray list, the asset laundering guidelines for real estate, casino, gold and silver and cooperative sector should have been issued. In which the directives of the three sectors have been issued only a day before the deadline. This confirms that the government is still not sensitive to this issue.' 

The Second General Assembly meeting of FATF held in Paris, France in the second week of last February has placed Nepal in the 'Grey List'. In a press conference held after the General Assembly, FATF President Elisa de Anda Madrazo announced that Nepal will remain on the "grey list" for the next two years. It has been five months since he was included in the 'grey list'. The meeting of Asia Pacific Group (APG) is being held in Japan in the first week of next August. In the meeting, a team led by Neelam Dhungana Timsina, senior deputy governor of Nepal Rastra Bank, is going to Japan on behalf of Nepal.  The

team will have to negotiate with the FATF representative in physical presence regarding the implementation of the given action plan (action plan) after Nepal's entry into the 'grey list'. On that occasion, if we cannot answer their questions with factual evidence, the image of Nepal in the international world will deteriorate further. Therefore, experts say that Nepal cannot come out of the "grey list" at the specified time. 

"In the first phase, Nepal should have issued directives on money laundering for real estate, cooperatives, gold and silver and casino sectors and issued directives regarding persons and organizations on the United Nations' restricted list," the source said.

The speed at which we have been working since the beginning, if we continue, we can come out of the gray list in due time. - Fanindra Gautam, Coordinator, Prevention of Money Laundering, National Coordinating Committee

'Since that work has been done, Nepal will not have much problem to counter in the meeting to be held in Japan. But the action plan to be followed is very challenging. The government should be very sensitive to this. Stakeholders will also have to make the investigation, study and prosecution of financial crimes effective. There is a possibility that we will fail in this process.

FATF has given Nepal a two-year action plan to get out of the gray list. In which every four-four months, Nepal has to report the work progress to FATF. In this way, if Nepal's performance is satisfactory in each evaluation, it will be removed from the gray list at the specified time. If the performance is not satisfactory, there is a possibility that FATF will blacklist Nepal.

Government officials claim that the way things have been going on so far, and if the government gives even a little priority, it can be removed from the 'grey list' within two years. In order to bring Nepal out of the "grey list", FATF's action plan should be implemented and progress based on evidence or results should be shown, said Phaninder Gautam, coordinator of the National Coordinating Committee for the Prevention of Money Laundering.

"The speed at which we have been working since the beginning, we can come out of the 'grey list' at the appointed time," he said. Gautam said that getting out of the

gray list is not as easy as the ministers say. But it is possible if continuous improvement and work is done accordingly. Dubai was given more threats than us. He got off the list within a year after doing well. Our effort is to work and show it at the international level," he said. "Firstly, there is an action plan to complete national and regional risk assessment regarding the prevention of money laundering. That is what is being done now. With the help of the World Bank, Asian Development Bank (ADB) and others, an international risk-based assessment is being done. They have trained. We are working on that basis.' 

FATF has also raised questions about who the ultimate beneficiary is. Sources said that to control the trend of doing business in the name of second or third person by hiding the real owner, the work of company registrar office will be made online so that all the real owners (beneficiaries) can be traced from it.

Prime Minister KP Sharma Oli had said that the 'grey list' is nothing and Nepal will leave it next year. In the meeting of the National Assembly on July 14, he claimed that the subject in the "grey list" was normal.

'Where is the economy going? How is the road to reform? I don't appreciate it. But the World Bank, ADB and others are doing evaluations," the Prime Minister said, "there may be some confusing things in the evaluations of others. That's why there's nothing to do with the gray list, go ahead and watch it next year.

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has also said that the government is continuing its organized and intensive efforts to get Nepal out of the gray list before the scheduled time. Answering a question raised by the parliamentarians in the House of Representatives meeting last week, Finance Minister Paudel claimed that as a result of Nepal's organized and intensive efforts, Nepal will get out of the "grey list" before the scheduled time. According to him, the law and action plan related to asset laundering are not kept in a drawer but are prepared for implementation and meaningful results. He said that the Act, 2080 to amend some laws related to the prevention of money laundering and the promotion of business environment to remove them from the

'grey list' has amended 19 different laws. Minister Poudel said that the Board of Directors has approved and implemented the "Elaboration of Quick Corrective Actions to Get Out of the Gray List, 2082" in order to get the country out of the "Grey List" as soon as possible and to ensure effective implementation so that it does not fall into such a list in the future.  According to him, the report has been arranged through the Financial Intelligence Unit based on the reporting format of the re-rating received from the Asia Pacific Group. 

There is no problem to get out of the 'grey list' if the state prioritizes and works. Because Laos is included in the "Grey List" along with Nepal. The Philippines dropped from the list after two years and the UAE after one year. In 2011, Nepal was also included in the "grey list" and was removed in 2014. At that time, Nepal came out of the "grey list" when we said that we will make a law. This time, government officials say that they have been put on the 'grey list' because they could not improve and implement those laws. 

What work has been done, what remains to be done?

On February 9 (February 2025), FATF has made an action plan (action plan) after Nepal was included in the 'grey list'. Nepal can easily get out of the list if it completes the work specified in the action plan. 

The two-year period is divided into five quarters. As the FATF meeting is held every four months, the corresponding time has been given to the respective countries. According to this, in the first four months (from February 2081 to June 2082) after being on the "Grey List", Nepal did not have to do anything more than normal reporting. FATF has not asked to do anything more than general inquiries during this period so that internal preparations can be carried out. 

But the reporting of the first four months from last June to October has started. According to this, instructions have been issued regarding the prevention of money laundering in the real estate, casino, gold and silver and cooperative sectors. The instructions issued earlier will also have to be updated now. 

Instructions were to be issued regarding persons and entities on the UN's restricted list. According to the same provision, the Rashtra Bank, Securities Board and Insurance Authority have issued guidance on financial transactions of individuals and organizations on the restricted list. According to this, it is mentioned in the directive not to deal with such persons, organizations, groups, organizations etc. Sources claim that almost all work has been done on these matters. 

In the second quarter (from November to January 2082), the production and expansion of weapons of mass destruction, the enhancement of supervisory capacity of regulatory bodies, the investigation and prosecution of financial crimes related to financial crimes and money laundering should be made effective. This work is also very challenging. 

In the third quarter (from February 2082 to June 2083), financial crime and national risk assessment in all sectors of the economy, effective supervision, investigation and prosecution of the cooperative sector with the enhancement of supervisory capacity of banks and financial sector. Hundi is investigating and prosecuting. Sources claim that this work is very challenging. 

The fourth quarter (June to October 2083) will increase awareness and understanding of national risk assessment, adopt measures to control criminal activities, supervise casinos, real estate and gold and silver sectors and provide guidance for action. Sources said that it is very difficult to get results by researching in these areas when there is no separate and effective regulatory body of these bodies in Nepal.  The