APG keeps Nepal FATF recommendations at partially compliant
Nepal AML authorities must close FATF gaps after APG refused eight re-rating requests
FATF
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Change
APG kept Nepal's requested FATF Recommendation re-ratings unchanged, finding progress insufficient across targeted financial sanctions, beneficial ownership, FI/DNFBP supervision, guidance and international cooperation.
Why it matters
The follow-up report keeps Nepal under pressure to complete technical AML/CFT reforms. Authorities must address unresolved gaps in timely sanctions-freezing implementation, DNFBP guidance, beneficial ownership transparency, risk-based supervision, fit-and-proper controls and international cooperation procedures before future APG re-rating requests can succeed.
Implications
- — Nepal AML/CFT authorities must address remaining R.6 and R.7 deficiencies on targeted financial sanctions, including timely freezing, broader communication mechanisms and guidance for all relevant FIs and DNFBPs.
- — Nepal registry and beneficial-ownership authorities must close R.24 and R.25 gaps on legal-person and legal-arrangement transparency, including timely BO updates, nominee-risk controls and access to accurate information.
- — Nepal financial-sector supervisors must strengthen R.26 risk-based AML/CFT supervision and fit-and-proper controls across financial institutions beyond limited progress in selected sectors.
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