Central bank hosts international AML/CFT conference amid FATF grey list concerns

KATHMANDU: A two-day international conference on “Contemporary Issues Pertaining to Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)” has begun in Kathmandu, organized by Nepal Rastra Bank (NRB) through its Anti-Money Laundering Prevention Supervision Department.

Inaugurating the conference, NRB Governor Dr. Bishwanath Paudel stressed the need to further strengthen Nepal’s internal mechanisms to prevent money laundering, especially at a time when the country is on the FATF grey list. He said the situation presents challenges but also offers important lessons to build stronger, more transparent, and internationally compatible systems.

Governor Paudel underlined that controlling money laundering and other financial crimes cannot be limited to a single institution or sector. He emphasized the need for collective commitment from banking, insurance, capital markets, cooperatives, regulators, and all concerned stakeholders. Strengthening weak areas and adopting modern practices, he said, will be crucial in making Nepal’s AML/CFT regime more effective.

Delivering welcome remarks, Executive Director of the Bank Supervision Department Dhirga Bahadur Rawal highlighted the risks and challenges seen in AML prevention and said the conference would contribute to reinforcing regulatory and supervisory practices. NRB board members and executive directors were present at the inaugural session.

The conference has drawn participation from subject experts from India, Bangladesh, Sri Lanka, and Mongolia, along with representatives from Nepal Rastra Bank, the Office of the Prime Minister and Council of Ministers, various ministries, financial sector regulatory bodies, and investigative and law-enforcement agencies of the Government of Nepal. Discussions are focused on current AML/CFT risks, regulatory and supervisory perspectives, judicial viewpoints, and capacity building of concerned agencies.

On the first day, two working papers were presented and a panel discussion was held. NRB Deputy Director General Aghyan Upadhyaya presented on “Current Status of AML/CFT Regime in Nepal with Regards to Mutual Evaluation 2023.” A second paper on trade- and service-based money laundering and countermeasures was presented by Supun Gunasekara, Senior Assistant Director of Sri Lanka’s Financial Intelligence Unit. A panel discussion on “The Importance of Consolidated and Coordinated Efforts to Counter Money Laundering (Supervisory Perspectives)” included participation from senior officials of Nepal’s tourism department, Financial Intelligence Unit, Securities Board, Nepal Insurance Authority, Bangladesh Bank, and banking expert Bhuvan Kumar Dahal, who moderated the session.

On the second day, three papers and another panel discussion are scheduled. Vijay Raina, Chief General Manager of the Reserve Bank of India, will present on regulatory tools and techniques to detect ML/PF/TF, including the use of data analytics and technology in supervision.

A representative from Mongolia’s Financial Regulatory Commission will share lessons from Mongolia’s journey from FATF grey listing to delisting. Prakash Chandra Lamichhane from Nepal’s Financial Intelligence Unit will present on the dissemination and use of FIU reports in ML/TF investigations.

NRB expects the conference to support legal and policy strengthening, adoption of international best practices, and institutional capacity development as Nepal works to improve the effectiveness of its AML/CFT framework