Nepal SBI Bank Organizes Seminar on Navigating FATF Evaluation and Best Practices
12th October 2025, Kathmandu
In a significant move to fortify the nation’s financial integrity, Nepal SBI Bank Limited (NSBL) successfully hosted a pivotal seminar in Kathmandu on October 11, 2025. The event, titled “Navigating FATF Evaluation – Best Practices,” served as a crucial platform to rally institutional efforts and ensure the effective implementation of Anti-Money Laundering and Countering the Financing of Terrorism (AML-CFT) measures across the Nepali financial sector.
Nepal SBI Bank’s Seminar
This proactive step underscores the banking community’s commitment to addressing the strategic deficiencies highlighted by the Financial Action Task Force (FATF), especially given Nepal’s current inclusion on the FATF’s list of jurisdictions under increased monitoring—commonly referred to as the “Grey List.”
The core focus of the seminar was unequivocal: to emphasize the necessity of collective effort, robust institutional coordination, and rigorous adherence to global compliance standards. For a nation striving to maintain international financial credibility and attract foreign investment, successfully navigating the upcoming FATF Mutual Evaluation is paramount. This initiative by NSBL is a powerful testament to the private sector stepping up to lead the charge in national-level compliance.
Key Stakeholders Unite for a Unified National Strategy
The success of any national compliance endeavor rests on the collaborative synergy between regulators, law enforcement, and financial institutions. The Nepal SBI Bank seminar successfully brought together a formidable group of high-level attendees, signifying a unified national approach to the AML-CFT challenge.
Gracing the event were key figures such as Dr. Neelam Dhungana Timsina, Deputy Governor of Nepal Rastra Bank (NRB), and Gajendra Kumar Thakur, Director General of the Department of Money Laundering Investigation (DMLI). Their presence, alongside senior officials from various government bodies, law enforcement agencies, and the chief executive officers of major commercial banks, emphasized the gravity of the mission. This cross-sectoral participation ensures that best practices and regulatory expectations flow seamlessly from the top-down to the operational level of every financial entity.
The Regulatory Mandate and Institutional Responsibility
In her address, Dr. Timsina highlighted the extreme significance of the FATF evaluation process for Nepal’s economic standing. She stressed that banks and financial institutions (BFIs) are the frontline defenders against illicit financial flows. The NRB’s mandate is clear: BFIs must not merely comply with the technical letter of the law but institutionalize a deep-seated culture of compliance that is effective in practice. This involves strengthening internal controls, adopting a comprehensive risk-based approach to customer due diligence, and ensuring timely and high-quality suspicious transaction reporting (STRs). The Deputy Governor’s remarks served as a powerful call to action, reinforcing the indispensable role of the financial community in safeguarding the country’s financial stability and reputation.
International Expertise for Local Relevance: Sharpening AML-CFT Skills
A critical element of the seminar was the expertise shared by Ramakrishna Susarla, a renowned AML-CFT and compliance expert and former State Bank of India official. Mr. Susarla’s session was focused on disseminating valuable insights on international best practices and contemporary approaches to compliance.
Nepal’s recent positioning on the FATF Grey List signals the need for accelerated alignment with global standards. Expert guidance on how international financial centers and developing economies have successfully navigated complex evaluations is vital. Mr. Susarla’s input would have covered crucial areas, including:
Enhancing the Risk Assessment Framework: Moving beyond basic checks to proactively identifying and mitigating high-risk sectors and transactions, which is a key deficiency often flagged by FATF assessors.
Leveraging Technology in Compliance: Discussing the integration of RegTech (Regulatory Technology), Artificial Intelligence (AI), and Machine Learning (ML) to improve the efficiency and accuracy of transaction monitoring, thereby reducing false positives and improving investigative outcomes.
Effective STR Mechanisms: Focusing on the quality, rather than just the quantity, of Suspicious Transaction Reports to provide actionable intelligence to the DMLI and the Financial Information Unit (FIU-Nepal).
By bringing in a seasoned international practitioner, Nepal SBI Bank ensured that the learning was practical and directly applicable to the unique challenges faced by the Nepali financial sector as it works to execute its national AML/CFT strategic action plan.
The Commercial Banking Commitment and Forward-Looking Strategy
The enthusiastic participation from Nepal SBI Bank’s leadership, including Managing Director and CEO Mr. Ram Kumar Tiwari, Deputy CEO and COO Mr. Vikas Anand, and CFO Mr. Rajesh Kumar Panda, highlighted the bank’s internal commitment. As a leading institution in Nepal for over 32 years, with a vast network of 101 branches, 125 ATMs, and other service points, the bank’s initiative sets a crucial precedent for the entire commercial banking landscape.
The concluding segment of the program culminated in a strong reaffirmation of commitment from all participants. This commitment extends beyond individual institutional compliance to fostering mutual coordination—a critical component for an effective national AML/CFT regime. The shared goal is to strengthen Nepal’s regulatory and operational framework not just to meet the immediate requirements of the FATF evaluation, but for long-term financial integrity and sustainability.
This forward-looking approach—championed by the event’s organizers, Nepal SBI Bank—is being heralded as a positive, proactive measure that will undoubtedly strengthen the collective resilience of Nepal’s financial system against the threats of money laundering and terrorist financing. The ability of the country’s financial sector to effectively address these global concerns will directly impact investor confidence, international trade, and the nation’s overall economic trajectory in the years to come.
For More: Nepal SBI Bank’s Seminar
