Anti-Money Laundering: APG presses Nepal for quick endorsement of AML Acts
KATHMANDU, JUN 14 -
As the government and opposition parties bicker over introducing three crucial Acts on anti-money laundering (AML), the Asia Pacific Group on Money Laundering (APG) has asked Nepal to bring those three Acts at the earliest.
The APG is the regional body that looks into the compliance of anti-money laundering in the Asia Pacific region and reports to the Financial Action Task Force (FATF), a global inter-governmental anti-money laundering body. Nepal is a member of the APG.
“The APG has recently written to us to bring the three Acts on Mutual Legal Assistance Act, Organised Crime and Extradition Treaty into Acts as Nepal’s chance of being blacklisted high,” said Dharma Raj Sapkota, the chief of Financial Information Unit (FIU) at Nepal Rastra Bank, that keeps track of the suspicious transactions and works as focal points for Nepal on exchange of information about money laundering. “We have replied that we are working hard to get those bills endorsed.”
The government officials fear that the FATF may blacklist Nepal from its upcoming plenary, taking place in Italy from June 18-22, if Nepal fails to bring these three Acts before the meet.
Blacklisting of Nepal means the letter of credit opened by Nepali banks may not be accepted by foreign banks which will affect Nepal’s international trade. Nepali nationals may have to undergo stricter surveillance at the intentional airports.
Amid such situation, the government has prepared to bring those Acts through ordinance. But, the opposition parties are protesting against such move of the government stating that current ‘caretaker government’ has no mandate to enact laws through ordinance. They have also asked President Ram Baran Yadav not to endorse the government’s proposal on bringing the ordinance. Even economists were divided over the issue when they met President Dr Ram Baran Yadav on Tuesday to discuss the upcoming annual budget.
With sharp political polarisation after the dissolution of Constituent Assembly, bringing these Acts through ordinance will be Herculean task for the government. Nepal is already on defensive this time as the diplomatic community has already told Nepal that they can no longer lobby in its favour from being blacklisted.
FATF’s Regional Review Group has already warned Nepal of blacklisting while suggesting to turn the pending bills into Act at its last meeting in New Delhi in May.
Meanwhile, the FATF itself has asked Nepal to send the progress report on anti-money laundering measures it has taken. “We have submitted the progress report by incorporating the recent directives issued by the FIU and foreign exchange management department of the NRB,” said Sapkota.
Source: The Kathmandu Post
