FinMin Stresses Better Regulation of Digital Payment Mechanism in Nepal

Finance Minister, Yubaraj Khatiwada, recently emphasized on the need for a more fitting procedure for digital payment system in the country in order to reduce the risk of money laundering and embezzlement.

Why it matters:

• There exists a high risk of money laundering with the abuse of technology and resources available. Therefore, there needs to be a proper guideline for financial transactions in Nepal.
• He also indicated that the illegal flow of funds would result in an unstable economy. He communicated that money laundering would result in more problems for the nation, and which would require more funds to be dealt with. That way, the funds meant for capital formation would be spent in dealing with security measures.

The Details:

• On a recent plenary meeting of Asia/Pacific Group (APG) held in Nepal, Finance Minister Khatiwada stressed the need of mutual assistance and cooperation between all jurisdictions in order to control money laundering and other illegal transactions regarding finance.
• The 21st plenary meeting of APG saw participation from roughly 500 delegates from 40 countries and 10 observer jurisdictions.
• The APG will be conducting a mutual evaluation of Nepal in 2020; a mutual evaluation was last conducted in 2012. Based on the 40 recommendations of FATF, Nepal has already started its self-evaluation.
• In order to prevent illegal money laundering activities in the country, the National Coordination Council (NCC), a governing body, has been formed. The council is led by the secretary of the Ministry of Finance. It includes deputy governor of the central bank, director general of the Money Laundering Investigation Department, joint secretary from the Ministry of Law, and chief of the Central Investigation Bureau of Nepal Police, among others.