Nepal committed to act against the flow of dirty money

Nepal is committed to act against the flow of dirty money in the country.

"The government has brought legal and regulatory laws to fight the flow of dirty money," informed the finance minister Shankar Prasad Koirala, talking to the Financial Action Task Force (FATF) mission here in his office today.

The mission of the FATF — an intergovernmental body that sets standards for fighting financial crime — is in Kathmandu to review the progress made by the country in combating money laundering and terror financing.

Giving higher importance to the fight against the flow of dirty money, the government has brought five Acts through ordinance – due to lack of parliament – in last four years, he said, adding that the government has also established Department of Money Laundering, empowered Financial Information Unit (FIU) under the central bank, and other agencies according to the international commitment of the country. "The initiative is also expected to help clean the economy."

The ordinances will be approved by the parliament as the country is going to have parliament soon, he added.

The country has improved significantly in the anti-money laundering, said central bank governor Dr Yub Raj Khatiwada, on the occasion. "Though, the political parties had some confusion over the understanding of the issue in the beginning, it has been made clear," he added.

The central bank has yesterday, again, asked the banks and financial institutions to keep hawk's eye on the flow of suspicious money transfers and report it to the central bank immediately to stop the flow of dirty money. 

The country will move ahead with more commitment correcting the weaknesses of the past, promised the finance secretary Shanta Raj Subedi. "The government has targeted to strengthen capacity of the related agencies in the future," he said, adding that the country will soon prepare the report and send it to the FATF.

The mission, on the occasion, said that they will submit the report to the higher level of FATF, and the February meeting will decide on the fate of Nepal. If the representatives submit a satisfactory report to the FATF, Nepal will be removed from the current status of ‘watch list’ of International Co-operation Review Group, which comprises countries at high risk of providing a breeding ground for money laundering and terror financing.

During the two-day visit the FATF mission that comprises of representative of the Asia Pacific Group on Money Laundering (APG) will gauge Nepal’s progress in anti-money laundering and combating the financing of terrorism (AML/CFT) based on compliance of FATF’s 40 recommendations plus nine special recommendations on terrorist financing.