Nepal China Relations: Neighboring country Nepal has been put in the gray list of Financial Action Task Force (FATF). Behind this, its closeness with China and misusing its money is being given a reason. Apart from this, Nepal could not give any satisfactory answer to FATF questions.
The news 18 report quoted the top intelligence source as saying, “This could be a step taken from the West to prevent Nepal’s inclination towards China. The West understands that Nepal is becoming a colony of China. There are many unknown companies and institutions that are sending money from Nepal to unknown places. “Sources also said,” Western countries are upset that the victims have not been rehabilitated due to pressure from opposition leader Prachanda during extremism. “
Why was Nepal put in the gray list?
According to sources, two things may be responsible for the disturbances in the gray list. First, illegal funding and second, Maoist rebellion. He said, ‘China is giving loans and grants to Nepal. The loan has to be given back but the grant does not have to be given back. This is the reason that the leaders of Nepal are using it on their own free will. Western countries fear that the people of Nepal may not go against China after the grant, this is the reason for the increasing pressure.
While both America and China are trying to make their strong inroads in Nepal, the Chinese investment is very high. Sources said, “USAID has already been stopped and after that the IMF will be strict.”
China is running move to weaken India
China’s expansionism is a matter of concern for all. China’s growing activism in Nepal is being seen as its strategy to weaken India’s regional dominance. Earlier, Tibetan refugees who came from China used to enter Nepal and handed over Nepal to India after investigation but now they are sent back to China, where they are arrested. Last year, only one refugee could enter India.
China considers Nepal important for the protection of its turbulent Tibet autonomous region. Strong relations with Kathmandu help Beijing to monitor Tibetan deports and suppress activities. Sources said that Nepal also wants Chinese investment to remove the shortage of its infrastructure and diversify a separate partnership with India.
Nepal put in gray list for the second time
This is the second time Nepal is kept in the gray list. Earlier, Nepal was in the gray list of FATF from 2008 to 2014. It includes countries that have strategic deficiencies in the system of money prevention (AML) and Anti -Terrorism (CFT) system. FATF was established in July 1989 by the G-7 summit in Paris, which was initially to check for measures to deal with money laundering. Following the 9/11 attacks in the US, FATF expanded the jurisdiction to deal with Terror Funding in October 2001.
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What happens when falling in the gray list?
If a country is put in the gray list, then it may face difficulties in taking loans from multilateral organizations like International Monetary Fund (IMF) and World Bank. Putting in the gray list of FATF is a warning and if they do not improve, they are put in the ‘FATF black list’.
https://www.abplive.com/news/world/nepal-on-fatf-grey-list-is-there-any-role-of-china-know-how-it-effect-on-india-2894255
