To prevent criminals and terrorists from using the financial system for funding, defence, or other improper purposes, a particular system, set of rules, and policies known as AML/CFT was designed. They involve preventing the transmission, preservation, and disposal of any illicit funds and income. Extreme risks are occurring in the financial and other related industries, not only within one nation but also across international borders, as a result of increased innovation, cutting-edge technologies, and the usage of sophisticated equipment. The world is exerting all of its efforts in addition to international cooperation to deal with this problem.
Worldwide, money laundering and terrorism financing are considered high-risk activities that have harmed the financial systems of numerous countries. The Asia Pacific Group on Money Laundering (APG), the Egmont Group of Financial Intelligence Units (FIUs), and the Asset Recovery Inter-Agency Network-Asia Pacific (ARIN-AP) are just a few of the AML/CFT-related international conventions and instruments that Nepal has ratified.
The government and corporate sectors around the world have been grappling with how to accomplish their goals and deal with the problems at the same time. Although deficient AML/CFT has impacted stability, integrity and reputation institutions have seen this gap and acknowledged it. However, due to its complexity, technicality, dynamism, and daily changes, appropriate and effective solutions are not always readily available. Without the assistance of qualified, skilled, and experienced individuals as well as technology, these problems could not be solved.
