Kathmandu, 20 May: Finance Minister Dr. Swarnim Wagle has said the government will take all necessary measures to remove Nepal from the “grey list” of jurisdictions under increased monitoring related to anti-money laundering.
Speaking at a meeting held Tuesday at the Ministry of Finance, coordinated by the Office of the Prime Minister and Council of Ministers, Wagle reaffirmed Nepal’s commitment during discussions with representatives of the Asia Pacific Group on Money Laundering (APG) and its International Cooperation Review Group (ICRG). He stressed that the government would use all available resources to exit the grey list and noted that improving governance is a key national priority under the leadership of the Prime Minister.
Wagle described Nepal’s current grey list status as a result of poor governance over the past three decades but claimed that recent reforms have already begun to make a noticeable impact. He added that government agencies are actively implementing and regularly evaluating a 15-point action plan aimed at strengthening anti-money laundering measures, and that Nepal’s current position is significantly improved compared to previous review periods.
However, APG Deputy Executive Secretary David Shannon noted that Nepal still has considerable work to do before it can be removed from the grey list. Officials from various institutions, including Nepal Rastra Bank and the Prime Minister’s Office, participated in the discussions.
The APG team also met with Inspector General of Police Dan Bahadur Karki, who briefed them on Nepal Police’s role in implementing the action plan and strengthening enforcement mechanisms. Discussions also covered capacity building, technical support, and future strategies, with both sides emphasizing enhanced information sharing and international cooperation to combat financial crimes. Nepal was placed on the grey list by the Financial Action Task Force (FATF) in February 2024 for a two-year period.
Separately, Finance Minister Wagle said the government is preparing to expand the middle class through the upcoming fiscal year 2083/84 budget. Speaking in Parliament, he said the policy aims to increase citizens’ income, skills, and access to opportunities, particularly for marginalized groups such as the poor, workers, farmers, and landless communities.
He emphasized that good governance remains the government’s top priority, stating that corruption, delays, middlemen, and institutional inefficiencies have weakened public trust and increased costs. The government, he said, is focused on building a “delivery-oriented state” through systemic reforms.
Wagle also highlighted the concept of a “governance dividend,” noting that economic growth has been hindered by slow decision-making, policy uncertainty, and institutional exploitation. The government aims to transform the economy into a dynamic, production-driven system led by innovation and entrepreneurship, with the private sector playing a key role under effective regulation and facilitation.
