Financial Crime World

Title: Nepal Passes Crucial Amendments to Strengthen Anti-Money Laundering Mechanisms

Subtitle: House of Representatives fortifies Nepal’s framework against illicit financial flows

Amidst global pressure to improve its Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) regime, Nepal’s Parliament has passed long-awaited amendments to its anti-money laundering law. The amendments aim to help Nepal avoid being included in the Financial Action Task Force (FATF) grey list.

Key Changes in the Amendments

The following changes will be made to Nepal’s AML/CFT framework with the passing of the amendments:

  1. Establishment of a Financial Intelligence Unit (FIU)
    • Centralizes the collection, analysis, and dissemination of suspicious transaction reports.
  2. Customer Due Diligence Measures and Enhanced Regulatory Oversight
    • Strengthens financial sector’s resilience against illicit financial flows.
  3. Provisions for International Cooperation and Information Exchange
    • Improves transparency and enhances Nepal’s standing in the fight against financial crimes.
  4. Regulatory Frameworks for Various Sectors
    • Ensures these areas are subjected to rigorous AML/CFT procedures.

Sector-Specific Regulatory Frameworks

The amendments establish regulatory frameworks for the following sectors:

  • Casinos
  • Money service businesses
  • Financial institutions

Commitment from the Government

Finance Minister Janardan Sharma expressed the government’s commitment to implementing necessary reforms:

“Our government is fully committed to implementing the necessary structural reforms to address weaknesses in our AML/CFT regime. The passage of these amendments is a crucial step in that direction and reaffirms Nepal’s commitment to the international community in the fight against money laundering and terrorist financing.”

Timely Implementation Expected

The Nepal Rastra Bank and other relevant agencies will begin implementing the new measures and establishing the necessary institutional infrastructure.

Expert Opinions

Experts and stakeholders emphasized the importance of sustained efforts and commitment from all parties involved to ensure the success of these reforms in combating illicit financial flows and creating a more robust and resilient financial system.