Nepal has been saved from being black listed by Financial Action Task Force (FATF) as the government has approved the second amendment of Anti Money Laundering (AML) Act and ordinance on regulation of money earned through criminal activities. The cabinet meeting held on June 6 passed both the ordinances and the President for subsequently has endrosed it. 

 

The FATF had been pressing the Nepali government to come up with a law against money laundering and wealth earned through criminal activities. Baikuntha Aryal, Joint Secretary at the Ministry of Finance said, “The danger of being black listed is over as the ordinance has been passed by the cabinet. Now, we can expect FATF to upgrade Nepal from the gray list.” 

 

It was feared that the FATF would blacklist Nepal on its extended assembly in Oslo, Norway on June 16. 

To implement the proposal of FATF, the government had amended the AML act for the first time four years ago. The second amendment was attempted two years ago but failed because of the opposition from some political parties. According to the new provision, the government can nationalise the wealth accumulated through criminal activities.