Kathmandu: The European Union has added Nepal to its list of high-risk third-country jurisdictions for money laundering and terrorist financing, following the Financial Action Task Force’s (FATF) similar designation earlier this year.
In a statement issued Tuesday, the European Commission announced the inclusion of Nepal and nine other countries—Algeria, Angola, Ivory Coast, Kenya, Laos, Lebanon, Monaco, Namibia, and Venezuela—on the revised list. Meanwhile, eight countries, including the United Arab Emirates (UAE), were removed.
The EU’s move subjects financial transactions involving Nepal to enhanced due diligence and stricter scrutiny by institutions within the bloc. The Commission stated the measure is intended to protect the EU’s financial system and uphold international standards against illicit financial flows.
This updated list mirrors the FATF’s grey list, formally known as “Jurisdictions under Increased Monitoring.” The FATF placed Nepal and Laos on the list in February 2024, citing shortcomings in their frameworks to counter money laundering and terrorism financing.