Nepal has been placed on the FATF grey list for the second time, prompting political turmoil with demands for Prime Minister KP Sharma Oli’s resignation. The FATF cited Nepal’s lack of progress in essential reforms to counter financial crimes. Additionally, proposed measures include demonetizing high-denomination banknotes to deter illicit activities. Laos has also been added to the grey list, while the Philippines has been removed.
Nepal’s recent inclusion in the Financial Action Task Force (FATF) grey list has ignited political unrest, leading the opposition party, CPN-Maoist Centre, to demand the resignation of Prime Minister KP Sharma Oli. This marks Nepal’s second appearance on the grey list, which highlights nations with weak anti-money laundering and counter-terrorism financing measures. Previously, Nepal was listed from 2008 until 2014.
During a session in the House of Representatives, opposition Member of Parliament Madhav Sapkota criticized the government for its shortcomings, asserting that such failures warrant the Prime Minister’s resignation. The FATF’s decision, made during its plenary meeting in Paris from February 17 to 21, cited Nepal’s insufficient progress in implementing essential reforms needed to combat financial crimes effectively.
Should Nepal continue to neglect these necessary adjustments within the next two years, it may face more severe restrictions on international transactions as well as additional sanctions. In a related proposal, Nepali Congress lawmaker Arjun Narshingh KC suggested the demonetization of NPR 500 and NPR 1000 banknotes to curb illicit financial operations and underscored the importance of parliamentary dialogue and addressing corruption to preserve Nepal’s international reputation.
In the organization’s latest update, the Philippines has successfully removed itself from the FATF grey list, while both Laos and Nepal have been newly added. This outcome also brings disappointment for South Africa, which sought to have its designation revoked. The FATF reaffirmed that its suspension of Russia’s membership, post-invasion of Ukraine, remains intact.
Nepal’s reinstatement on the FATF grey list has led to political upheaval, with calls for the Prime Minister’s resignation due to the government’s failure to address financial reform deficiencies. The potential consequences of non-compliance within two years could severely impact Nepal’s international financial dealings. Lawmakers advocate for measures such as the demonetization of certain banknotes to combat financial crime and restore the nation’s global standing.
Original Source: resonantnews.com
