Prime Minister Dr. Swarnim Waglé arrived in the United States on Saturday, October 3, 2026, for a series of high-level meetings aimed at boosting bilateral cooperation, securing reconstruction assistance, and facilitating Nepal’s exit from the Financial Action Task Force (FATF) ‘grey list’.
Key Meetings Scheduled
Prime Minister Waglé is scheduled to meet with U.S. Treasury Secretary Scott Bessent and World Bank Group President Ajay Banga on Monday, October 5, 2026. These meetings are expected to cover a range of critical issues, including enhancing bilateral support, post-disaster reconstruction efforts, and strategies for Nepal’s removal from the FATF’s ‘Increased Monitoring’ list, commonly known as the ‘grey list’.
Nepal’s FATF Grey List Status
Nepal has remained on the FATF ‘grey list’ since June 2026. The intergovernmental organization, which sets international standards to combat money laundering and terrorist financing, has provided Nepal with a six-point action plan to address strategic deficiencies in its anti-money laundering and counter-terrorist financing systems. Nepal was previously placed on the ‘grey list’ in 2008 and was removed in 2014 after implementing necessary reforms.
Reconstruction and Financial Aid
The World Bank Group has provided Nepal with emergency financial assistance of up to $170 million (approximately Rs 25 billion) for reconstruction following the devastating floods in the Rasuwa-Bhotekoshi region on August 26, 2026. These floods caused significant damage to physical and economic infrastructure, necessitating international support for rebuilding efforts. Prime Minister Waglé recently concluded a visit to India, where he discussed legal reforms to promote economic development.
Broader Engagements and Future Outlook
Beyond the meetings with the Treasury Secretary and the World Bank president, Prime Minister Waglé is also slated to engage with senior officials from the U.S. Department of the Treasury, the U.S. International Development Finance Corporation (DFC), and leading private sector investors. The success of Nepal’s efforts to be removed from the ‘grey list’ hinges on the timely and effective implementation of the FATF’s six-point action plan. FATF has granted Nepal a two-year period for these reforms, warning of potential international financial sanctions if implementation is not satisfactory.
Open Questions
The exact amount of reconstruction and investment aid that will be secured from Prime Minister Waglé’s U.S. visit remains unclear. Furthermore, the timeline for Nepal’s exit from the FATF ‘grey list’ is contingent upon the government’s effective execution of the six-point action plan. The specific nature of the support Nepal seeks from the U.S. to exit the ‘grey list’ during the meeting with Secretary Bessent is also not yet defined.
