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The recent inclusion of Nepal in the Financial Action Task Force (FATF) 'gray list' presents both immediate challenges and opportunities for systemic reform for Nepal.

The FATF Plenary that concluded in Paris on Friday decided to include Nepal and Laos on the list. This follows the Asia Pacific Group's mutual evaluation report which identified significant deficiencies in Nepal's anti-money laundering framework.

“In February 2023, Nepal made a high-level political commitment to work with the FATF and Asia Pacific Group (APG) to strengthen the effectiveness of its anti-money laundering and combating the financing of terrorism (AML/CFT) regime,” the FATF said. “Since the adoption of its mutual evaluation report in August 2023, Nepal has made progress on some of the actions recommended in the report, including streamlining mutual legal assistance (MLA) requests and increasing the capabilities of the Financial Information Unit (FIU).”

The APG's third mutual evaluation report of 2023 had highlighted various weaknesses in Nepal's anti-money laundering and counter-terrorism financing controls. FATF has been evaluating the status of any country in controlling money laundering and terrorism financing based on 11 effectiveness indicators and 40 technical indicators. FATF has concluded that Nepal has not been able to demonstrate full effectiveness in any of the 11 prescribed effectiveness standards. According to APG's latest report, Nepal has not been able to achieve full or substantial progress in any of these 11 indicators.

The gray-listing could have far-reaching implications for Nepal's economy. International financial institutions now onwards are likely to implement enhanced due diligence measures for transactions involving Nepali entities. This can affect trade financing and remittance flows which are  very crucial components of Nepal's economy. Likewise, the country might face increased transaction costs and delayed processing times for international transfers. More importantly, this could deter foreign investment at a time when the country is seeking to attract international capital for its development projects. The increased perception of risk could lead to higher borrowing costs and more stringent lending conditions in international markets.

The FATF, however, has provided Nepal with a clear, albeit challenging, pathway to exit the gray list by January 2027. The seven-point action plan encompasses comprehensive reforms, from enhancing public awareness about money laundering risks to strengthening technical compliance in preventing terrorism financing, improving risk-based supervision of commercial banks, higher risk cooperatives, casinos, dealers in precious metals and stones and the real estate sector, and demonstrating identification and sanctioning of hundi operators.

Suman Dahal, the director general of the Department of Money Laundering Investigation, says Nepal has already begun addressing these challenges. “Instead of getting entangled in many small financial crimes, we will now focus on major crimes. We will work by setting thresholds for this purpose," he added. 

The focus appears to be on three critical areas: improving investigative capacity, increasing prosecutions of financial crimes and enhancing asset seizure mechanisms. One noteworthy intervention is the preparation to implement new technological solutions, including KYC software and integrated data management systems. These technological upgrades, if successfully implemented, could significantly improve Nepal's ability to monitor and prevent financial crimes.

The success of Nepal's efforts will largely depend on its ability to translate plans into action. The country's previous experience with the gray list (2010-2014) should provide valuable lessons for implementing sustainable reforms rather than quick fixes.

The real measure of success will not merely be exiting the grey list but establishing a robust, transparent financial system that can effectively prevent and combat financial crimes. This could position Nepal as a more attractive destination for international investment and trade in the long term.

The Nepal Stock Exchange (NEPSE) gained 11. 66 points to close at 2,755. 40 points on Sunday.

Similarly, the sensitive index surged by 0. 66 points to close at 458. 64 points.

A total of 21,206,005-unit shares of 328 companies were traded for Rs 11. 54 billion.

Meanwhile, Guardian Micro Life Insurance Limited (GMLI) was the top gainers today, with their price surging by 10. 00 percent.

Likewise, Upakar Laghubitta Bittiya Sanstha Limited (ULBSL)​​​​​​​​​​​​​​ was the top loser as its price fell by 6. 79 percent.

​At the end of the day, total market capitalization stood at Rs 4. 57 trillion.

Members of Parliament (MPs) have demanded an immediate halt to the construction of a cable car in the Pathibhara area citing that it was started against the wishes of the local people.

During the Emergency Hour of the meeting of the House of Representatives (HoR) today, they drew the attention of the government to stop the construction bid in order to resolve the situation of confrontation created by the people trying to resist the construction of the cable car.

During the meeting, MP Rajendra Prasad Lingden remarked that Pathibhara has turned into a battlefield without understanding the wishes of the local people.

He added that it was not the job of the people to fight in society to fulfill the interests of a businessman.

Member of Parliament Yogesh Bhattarai said that tension has been brewing in the Pathibhara Mukumlung area of Taplejung district for a few days over the issue of building a cable car.

Lawmaker Toshima Karki said that the construction of the cable car in the area should be made dispute-free, adding that the government should find a solution through negotiations, not by using force.

MP Madhav Sapkota said that Nepal has reached the 'grey list' in terms of money laundering after failing to maintain good governance.

He drew the attention of the government by saying that no action has been taken against those who misbehaved in the office of Member Secretary of National Sports Council Tankalal Ghising.

Parliamentarian Tara Lama alleged that the people were injured by the local administration in the name of removing the settlement in Beldandi of Kanchanpur and demanded the government to treat the injured and take action against the guilty ones.

MP Padam Giri has expressed grief over the death of Nepali student Prakriti Lamsal at KIIT University in Odisha state of India last Sunday, saying that the victim was torturing her mentally and physically and was not even informed that she needed protection.

MP Ishwari Devi Neupane, noting that there is a debate between the pros and cons of the former king's statement on the eve of the Republic Day, said that the attack on the democratic republic in any pretension was not acceptable.

MP Rama Koirala said that the manpower company was illegally sending workers to jobs, causing problems to workers.

MP Raghuji Pant said that after the incident at KIIT University in the Indian state of Odisha, the immediate intervention of the Prime Minister and the Government of Nepal has solved some problems, but not completely.

Lawmaker Mahesh Basnet demanded that the road be widened and made safe due to the increasing number of accidents on the Mechi Highway and the increasing pressure of vehicles.

 MP Ramprakash Chaudhary demanded compensation from the government, informing that a group of wild elephants were terrorizing the northern area of Sarlahi and destroying commercial banana and maize farms.

As a decor enthusiast, you are always on the hunt for something novel to add to your house. Perhaps you want a new centerpiece for the dining table or you think your living room walls could use something else besides that lone clock and the painting you have had for years. Sometimes, you suddenly get the urge to replace the vases around the house with something spectacular. Come to think of it, you need new planters as it’s time to repot your green babies. But where can you find decor items that aren’t mundane and don’t cost an arm and a leg? This is where you might be stumped. Here is a carefully curated list of places where you can pick up some super interesting things for your home. 

Toit Studio

This ceramics studio, located in Sanepa, Lalitpur, has an interesting range of vases, planters, plates, mugs, jugs, and bowls and trays that you can use in the kitchen or bathroom, among other things. There are a variety of shapes and sizes available, and they are really aesthetic. Most of the things you find here are stuff that you might have seen on Pinterest. Pick a piece or two to change the look of your space. The good thing is that the price range is affordable. But they don’t accept cards so make sure you have digital payment or cash with you when you go there. 

Sana Hastakala

Founded in 1989 and backed by UNICEF then, Sana Hastakala is an NGO that empowers marginalized communities through traditional skills and modern techniques. It’s a treasure trove of Nepali handicrafts. From rugs and table runners to felt shoes, slippers and more, there’s a lot of good stuff here. The prices, we feel, are cheaper than other handicraft stores in Kathmandu. The quality of the products is top-notch. The outlet is located in Jhamsikhel, Lalitpur near the Army Chief’s residence and it’s open from Sunday to Friday from 10 in the morning to six in the evening. We recommend going with a friend as you might need help deciding what to buy as there’s just so much to choose from. 

Deego Nepal

Deego Nepal is a sustainable lifestyle brand founded in 2019. They avoid plastic in their products which are crafted from eco-friendly materials like bamboo by women in Bardiya, Dang, and Kapilvastu. They have meticulously woven baskets, trays, placemats, and coasters among other things. All this can add a touch of rustic charm to your decor. Consider replacing your regular stools with bamboo stools from Deego Nepal to infuse nostalgia and warmth into your space. The items might be a little on the pricier side but considering their quality and that they are mostly handmade it’s justified. They have a physical outlet at Bhanimandal, Lalitpur, but you can also buy their products online or from different concept stores and marts in the city. 

Kamakhya Decor

A lot of stores customize furniture pieces these days. You can show them a photo of the design you want and they will be able to replicate it for you. Kamakhya Decor in Naxal, Kathmandu, is a good place to do that. They have a range of fabrics, colors, and materials to make all kinds of items according to your needs. They will also do it for cheaper than most places. There are some readymade items at the store if you need to replace something at home and can’t wait. But they will make your order in a week or less so even that shouldn’t be a problem. They have a range of cabinets, side tables, racks and other functional but pretty things. 

Masta Kala

The company was founded in 2018 with an aim to create unique, functional products that resonate with people’s emotions. It draws inspiration from Nepal’s rich cultural heritage. You get a range of elegant home decor items at Masta Kala which is located at Sanepa Chowk in Lalitpur. You can also personalize items like key holders and name plates among other things. Be warned though, a trip to Masta Kala can leave your purse lighter as you will want to buy everything you see. The store is pleasing and makes shopping a relaxing experience. 

Pia Nepal

If you don’t want to hunt around for the perfect piece that can be a focal point in your home, and don’t mind spending a little more for it, Pia Nepal could be your option. An artisanal luxury brand, it has everyday items like lamps, bowls, and wall hangings that can lend a regal vibe to your space. The items are carefully created to feel like a special piece and you can see perfection in the details. We feel their products, however small or big, add a subtle charm to our spaces. It’s about an understated elegance that you won’t get anywhere else. 

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has said the government would get rid of 'grey list' within in the set timeframe.

Finance Minister Paudel said it after the Financial Action Taskforce (FATF) included Nepal in the 'grey list'.

"We faced this situation for our failure to meet the criteria in the set time," he admitted, while expressing hope that Nepal would be able to get rid of the 'grey list' by forwarding effective activities to meet the criteria set in the Action Plan by the recent Paris meeting of FATF.

FATF is the global money laundering and terrorist financing watchdog. It sets international criteria that aim to prevent these illegal activities and the harms they cause. 

A total 478 incidents of fire occurred across the country from January 14-February 12 alone.

Spokesperson of the Nepal Police, Deputy Inspector General Dinesh Kumar Acharya, shared that 22 people lost their lives in these fire incidents.

Of them, 11 were men, 10 women and a child, he added. Similarly, 87 people, including 26 men, 54 women, four boys and three girls, were injured in fire incidents during the period.

A total of 3,503 security personnel were mobilized to douse the fire, said Acharya.

The highest number of fire incidents took place in Koshi province which stood at 129.

Similarly, 89 fire cases occurred in Madhes Province, 42 in Bagmati Province, 37 in Kathmandu Valley, 39 in Gandaki Province, 63 in Lumbini Province, 32 in Karnali Province and 47 in Sudurpaschim Province.

​​​​The fire damaged 68 houses and 66 huts in one month.

As per the details released by the Nepal Police Headquarters, property worth Rs 184.8 million was damaged in fire incidents. 

The UK ambassador to Nepal, Rob Fenn, paid a courtesy call on Minister for Energy, Water Resources and Irrigation, Deepak Khadka, today.

They held the meeting in course of their participations in the event relating to the Nepal Renewable Energy Programme organised by the Alternative Energy Promotion Centre.

On the occasion, Energy Minister Khadka acknowledged the contribution of the UK to Nepal's renewable energy sector through the UK Aid.

He stated that Nepal and the UK have 209 years old relations.

He thanked the UK government for its support to the post-quake reconstruction efforts besides the promotion of renewable energy.

He said that  the UK Aid-like programmes will help meet the electricity production target set by the Energy Development Roadmap, 2081 BS endorsed by the government recently.

He also utilised the moment to call on the UK government to consider the extension of the term of NREP by two years.

The program will be ending on March 31. Ambassador Fenn praised Nepal’s efforts in prioritizing the development of hydropower and renewable energy, noting that these actions have also supported India's clean energy mission.

He further said that discussions are ongoing in the Investment Committee to explore additional areas of collaboration to further enhance Nepal's energy sector.

The Nepal Stock Exchange (NEPSE) gained 3. 14 points to close at 2,743. 74 points on Thursday.

Similarly, the sensitive index surged by 1. 90 points to close at 457. 98 points.

A total of 15,637,006-unit shares of 309 companies were traded for Rs 8. 63 billion.

Meanwhile, Guardian Micro Life Insurance Limited (GMLI) was the top gainers today, with their price surging by 9. 99 percent.

Likewise, Barahi Hydropower Public Limited (BHPL) was the top loser as its price fell by 8. 35 percent.

​At the end of the day, total market capitalization stood at Rs 4. 55 trillion.