NRB opens international AML/CFT conference in Kathmandu

KATHMANDU: A two-day international conference on 'Contemporary Issues Pertaining to Anti Money Laundering and Combating the Financing of Terrorism (AML/CFT)' opened in Kathmandu on Wednesday. The Money Laundering Prevention Supervision Division of Nepal Rastra Bank (NRB) has organised the conference.

Addressing the opening session, NRB Governor Dr Biswo Nath Poudel said Nepal must strengthen and empower its internal anti-money-laundering mechanisms while the country remains on the Financial Action Task Force (FATF) Grey List. He said, "While being on the Grey List is a challenge, it has taught us important lessons regarding the need to strengthen internal mechanisms, ensure transparency, and integrate with global standards."

Governor Poudel urged cooperation among state agencies and stakeholders, saying the fight against financial crime requires a collective effort across banking, insurance, capital markets and cooperatives. He added that a shared commitment from responsible state agencies is essential to control money laundering and other financial crimes.

The governor said he was confident the conference would help adopt the latest practices and address weaknesses in Nepal’s AML/CFT framework. Welcoming delegates, Dirgha Bahadur Rawal, Executive Director of the Bank Supervision Department, said the event would help address risks and strengthen regulatory and supervisory practices. NRB Director Chinta Mani Siwakoti and other executive directors attended the opening session.

The conference features experts from India, Bangladesh, Sri Lanka and Mongolia, and representatives from the Office of the Prime Minister and Council of Ministers, various ministries, financial regulators and investigative agencies of the Government of Nepal. Sessions will cover AML/CFT challenges and risks, regulatory and judicial perspectives, and capacity building.

On the first day, two papers were presented and a panel discussion was held. NRB Deputy Director Abhiyan Upadhyay presented a paper on the current status of Nepal’s AML/CFT regime with regard to the Mutual Evaluation 2023. Supun Gunasekara, Senior Assistant Director of the Financial Intelligence Unit of Sri Lanka, spoke on trade- and service-based money laundering and countermeasures.

A panel on "The Importance of Consolidated and Co-ordinated Efforts to Counter Money Laundering (Supervisory Perspectives)" included Ramkrishna Lamichhane, Director General of the Department of Tourism; Bashu Dev Bhattarai, Head of the Financial Intelligence Unit (FIU-Nepal); Rupesh KC, Executive Director of the Securities Board of Nepal (SEBON); Hreedayaswor Pandit, Deputy Director of the Nepal Insurance Authority; and Md Faisal Kabir, Deputy Director at Bangladesh Bank. Banking expert Bhuvan Kumar Dahal facilitated the discussion.

On the second day, the conference was set to feature three paper presentations and a panel on judicial perspectives. Vijay Raina, General Manager of the Reserve Bank of India (RBI), was due to speak on regulatory tools and techniques to detect money laundering and terrorist financing, including RBI initiatives on data analytics and technology in supervision. Nominchuluun Batsukh of Mongolia’s Financial Regulatory Commission was scheduled to present Mongolia’s experience of moving from increased monitoring to delisting and the lessons for Nepal.

Other presentations include Prakash Chandra Lamichhane from the Department of Money Laundering Investigation on the dissemination and use of Financial Intelligence Unit reports in ML/TF investigations. The final panel, "The Importance of Consolidated and Co-ordinated Efforts to Counter Money Laundering TF/PF (Judicial Perspectives)", will feature senior judicial and investigative officials from Nepal and a representative from India, with Deputy Attorney General Sanjeev Raj Regmi facilitating. Arya Joshi, Head of the Money Laundering Prevention Supervision Division, will deliver the closing remarks.

The central bank said the conference aims to build capacity and adopt best practice from other countries to strengthen Nepal’s legal and policy frameworks for effective AML/CFT implementation while the country remains on the FATF Grey List.