Country escapes being blacklisted till June

KATHMANDU, FEB 27:

Nepal has avoided being blacklisted by the Financial Action Task Force (FATF) till June.

The FATF plenary has kept Nepal at a status quo as recommended by the International Co-operation Review Group. For the time being, Nepal will be listed as Improving Global AML/CFT Compliance Ongoing Process which is also recognised as the Grey List.

However, if by the deadline of June, 2013, Nepal fails to execute the ‘Action Plan’ against money laundering it has proposed to FATF, the country will be blacklisted.

The delegation, headed by deputy governor of central bank Maha Prasad Adhikary that returned from FATF plenary held on February 18-22, in Paris, has informed that the anti-money laundering body has insisted that Nepal must implement the remaining Bills and Acts as soon as possible.

Nepal has escaped being blacklisted this time due to the last minute approval of the Organised Crime Bill on February 15. However, it needs to show progress in the endorsement of the amendment of the Assets Laundry Prevention Act, apart from the Proceeds of Crime Bill by the next plenary and working group meeting of FATF in Oslo, Norway, on June 17-21. These two Acts provide authorities enough strength to confiscate property amassed through illegal means and fight organised crime.

FATF, a global standard setting body for anti-money laundering and combating financing of terrorism (AML/CFT), has asked Nepal to pass these Bills to avoid being blacklisted by next meeting.

If Nepal gets blacklisted by FATF, extra fees will be levied on cross-border financial transactions, and international governments will forbid its citizens and organisations to do any sort of transaction with Nepal. Nepali accounts — either personal or belonging to government bodies — will also be asked to be closed.

Source: THT