NRB seeks help to combat money laundering

KATHMANDU, MAY 4: 

Nepal Rastra Bank (NRB) has asked donors, especially International Monetary Fund (IMF), to continue with their help in reforming the laws and increasing the capacity of the supervisory bodies which could help in fighting against the flow of dirty money.

IMF has been helping Nepal to reform anti-money laundering laws, and increase supervisory capacity of the Financial Information Unit under the central bank, apart from preparing the national strategy, which country has already drafted with the help of IMF.

The IMF is providing technical assistance to Nepal in executing the national strategy, according to the central bank.

Nepal Rastra Bank governor Dr Yubaraj Khatiwada apprised the annual meeting of the steering committee of the Anti-Money Laundering-Combating the Financing of Terrorism (AML-CFT) Topical Trust Fund under the IMF’s coordination, about developments in Nepal on the issues of the legal reforms regarding anti-money laundering.

Over a dozen donors were present in the meeting on Tuesday in Doha, where they welcomed Nepal’s progress in fighting the flow of dirty money, despite various challenges. But they also asked Nepal to implement its earlier commitments as soon as possible.

Meanwhile, a team led by central bank deputy governor Maha Prasad Adhikari will go to New Delhi on Monday to take part in the face-to-face interaction to be held on May 8.

Nepal will present its current status on its move in fighting against the flow of dirty money during the face-to-face meet, according to the central bank. Though the country has ratified AML UN conventions, it has still to pass three key Bills — Mutual Legal Assistance Bill, Extradition Bill and Bill Against Organised Crime — that are among the major commitments to the Financial Action Task Force (FATF), an inter-governmental body established in 1989, by the ministers of its member jurisdictions to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. It is therefore a ‘policy-making body’ which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.

Similarly, FATF’s decision making body — FATF Plenary — meets three times every year. This year, it met in February in Paris and granted time extension to Nepal to pass the three remaining Bills. The new recommendations it passed in the February meeting can also help combat corruption.

The renewed February mandate will allow FATF — through its global network of 187 partner countries — to ensure all are doing their part to make the international financial system off-limits to criminals, terrorists and others threats to financial stability.

Source: THT