FATF
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APG keeps Nepal's FATF ratings unchanged across eight Recommendations
APG kept Nepal partially compliant on eight FATF Recommendations, leaving its AML/CFT framework status unchanged on enhanced expedited follow-up
Change
The Asia/Pacific Group on Money Laundering kept Nepal's FATF Recommendation ratings unchanged, finding reform progress insufficient to upgrade any of eight requested re-ratings across targeted financial sanctions, beneficial ownership, FI and DNFBP supervision, guidance and international cooperation.
Why it matters
APG's second enhanced expedited follow-up report leaves Nepal's technical-compliance ratings unchanged: R.6, R.7, R.24, R.25, R.26, R.28, R.34 and R.40 all remain partially compliant despite acknowledged reforms including the 2024 AML Rules and amended targeted-financial-sanctions procedures. Nepal remains on enhanced expedited follow-up with 28 Recommendations compliant or largely compliant. The report assesses Nepal's national framework and directs further reform to Nepal's authorities; it creates no new operator obligation, but the unchanged status is a reference point for country-risk assessment of Nepal exposure.
Implications
- — Nepal's AML/CFT authorities and supervisors must complete the outstanding technical reforms — across targeted financial sanctions (R.6, R.7), beneficial ownership (R.24, R.25), FI and DNFBP supervision (R.26, R.28), guidance (R.34) and international cooperation (R.40) — before a future APG re-rating request can succeed, as the current progress was found insufficient.
- — Financial institutions with Nepal exposure can treat the unchanged ratings as a country-risk reference point: Nepal's framework remains only partially compliant on these eight Recommendations and stays on enhanced expedited follow-up, which firms may factor into jurisdiction-risk scoring for Nepal-linked customers and correspondents.
Who is affected
- — Nepal AML/CFT policymakers, competent authorities and financial-sector supervisors responsible for completing the outstanding reforms
- — Nepal DNFBP supervisors responsible for R.28 risk-based supervision
- — Country-risk and financial-crime teams at firms with Nepal exposure using FATF/APG status as a jurisdiction-risk input