Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Following Nepal’s inclusion on the Financial Action Task Force (FATF) grey list, the government has intensified its monitoring of the cooperative sector. Concerns over money laundering and non-transparent financial transactions through cooperatives have prompted mandatory reporting requirements on anti-money laundering compliance.
As per directives from the Department of Cooperatives, all cooperative organizations nationwide must submit detailed reports for the fiscal year 2081/82 (2024/25) by the end of July. The Ministry of Federal Affairs and General Administration has instructed all local governments to ensure cooperatives under their jurisdiction meet the deadline.
The directive states: “With financial crimes becoming increasingly complex globally, Nepal has been placed on the grey list for needing improvements in 16 strategic areas.” Under the National Strategy and Action Plan (2081–82, 2085–86), the government aims to strengthen regulation and supervision of the cooperative sector.
Currently, Nepal has 32,965 registered cooperatives with over 10.9 million share members and share capital exceeding NPR 143 billion. The sector mobilizes NPR 1.125 trillion in savings and has disbursed NPR 923 billion in loans. Authorities estimate that more than NPR 300 billion deposited in over two dozen troubled cooperatives is at risk.
The government expects the tightened oversight to discourage opaque transactions and strengthen the risk-based monitoring system, a key step toward getting Nepal off the grey list.
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