Kathmandu, February 11 Nepal should strengthen and consolidate its internal mechanisms, learning from best practices worldwide, to address the issue of money laundering, especially now that it is on the FATF's grey list, a top official at the central bank said here on Wednesday.
The Financial Action Task Force (FATF) placed Nepal on the 'grey list' in October 2025. This means, according to the FATF, that the Himalayan nation has committed to quickly resolving the identified deficiencies within agreed timeframes and is subject to increased monitoring.
Bishwono Nath Paudel, Governor of Nepal Rastra Bank, the central bank of Nepal, said that while being on the grey list is challenging, "it has taught us an important lesson about consolidating internal mechanisms, adopting transparency, and integrating with global standards."
A collective commitment is needed from all sectors, including banking, insurance, and the capital market, to combat financial crime, as it is not confined to any agency or area, Paudel said while addressing a conference on anti-money laundering measures.
The two-day International Anti-Money Laundering conference on the theme 'Contemporary Issues Pertaining to Anti-Money Laundering and Combating the Financing of Terrorism' – commonly known as AML/CFT – kicked off here on Wednesday.
The conference is being attended by experts, economists, and government officials from Bangladesh, India, Mongolia, Nepal, and Sri Lanka.
During the conference, panel discussions and presentations will be held on various topics, including the 'Current Status of AML/CFT in Nepal'.
"The conference will be beneficial for Nepal to learn from the best practices of other countries in strengthening the legal framework and ensuring effective implementation, which will help Nepal move off the grey list of money laundering," a statement by the bank, which is the main organizer of the event, said.
