Title: Nepal’s Anti-Money Laundering and Counter-Terrorist Financing Measures under the Spotlight: APG’s Assessment
Background
- Nepal undergoes evaluation by Asia/Pacific Group on Money Laundering (APG)
- Focus on Nepal’s risks, effectiveness, and priority actions for improvement
- Lower-middle-income country with vulnerabilities: corruption, tax evasion, human trafficking, financial sector crimes, porous borders, proximity to countries with terrorism and transnational crimes
Key Findings and Areas for Improvement
Financial Intelligence Unit (FIU)
- Good resources, operational independence, and policies
- Room for improvement in STR reporting, particularly from non-commercial banks
- Lack of reporting from Designated Non-financial Businesses and Professions
Department of Money Laundering Investigation (DMLI)
- Solid progress in terrorism financing sanctions
- Need to strengthen legal framework for proliferation financing
- Gaps in powers and resources needed for effective high-risk case investigations
Money Laundering Investigations, Prosecutions, and Confiscation
- Legal framework in place, but lack of commitment, resources, and institutional policies
- Need stronger powers, resources, and institutional procedures for effective results
Priority Actions for Nepal
- Improve AML/CFT compliance
- Establish and enhance operational-level cooperation
- Address gaps in implementing UNSCR designation financial sanctions
- Strengthen the Department of Money Laundering Investigation’s powers and resources
Conclusion
- APG encourages continuous improvement in Nepal’s AML/CFT regime
- Maintain a safe and compliant financial environment
- Strengthen stance against financial crimes and prevent vulnerabilities