The Financial Action Task Force (FATF) has listed Iran, Myanmar, and North Korea in its blacklist due to their strategic deficiencies in anti-money-laundering, counter-terrorist financing, and proliferation financing frameworks. Countries in the FATF blacklist are subjected to serious financial and economic consequences, which include severe banking restrictions, reduced foreign investment, higher transaction costs, and currency depreciation. To sum up, the FATF blacklist cripples a country's economy by restricting its access to the global financial system. During the FATF plenary meeting held in Paris in February 2025, Nepal was degraded to a grey list (officially: jurisdictions under increased monitoring) due to Nepal's failure in anti-money-laundering and counter-terrorist-financing frameworks. Consequently, the FATF had granted Nepal a two-year timeframe to make necessary reforms in financial standings. Exactly one year on, Nepal's status was reviewed at the recently held plenary meeting of FATF in Mexico City on February 13. Although the official statement from the government regarding this issue has not been released, it has been known that FATF is not content with Nepal's efforts in emerging out of the grey list. Notably, the two-year time frame given to Nepal was a reference timeline. Had Nepal executed the necessary measures against anti-money-laundering and counter-terrorist financing by now, Nepal would have exited out of the grey list during the recently held plenary meeting. Recently, speaking at a programme organised to mark National Anti-money-laundering Day, Finance Minister Rameshwar Khanal conveyed that Nepal was aiming to exit out of the FATF grey list by the end of this year. Khanal further stressed that it is a shared responsibility of all concerned authorities and stakeholders to work towards improving Nepal's financial standing. However, he did not specify which measures have been implemented so far. On the contrary, Minister Khanal has been criticised for his decision to grant capital gains tax exemption on profits from investments in Nepal to a Mauritius-based Dolmo Impact Fund, a company for which he serves as a consultant. Although this is not directly associated with a money-laundering precedence, many offshore companies like Dolmo have a dubious financial reputation. On a positive note, the Supreme Court has issued a temporary stay order halting the implementation of the government's decision. The current interim government, formed on the backdrop of the violent Gen-Z movement, was expected to reform the flimsy financial standing of the country. Prime Minister Sushila Karki had always been vocal against the persistent state-sponsored corruption and bad governance. She earned widespread praise during her tenure as the Chief Justice largely for her zero-tolerance approach to financial misconduct. Her reputation as an anti-corruption activist and supporter of the Gen-Z movement led to her recognition by the Gen-Z as the interim Prime Minister. Contrary to the expectations of the people, the government has refrained from reforming the financial standing of the country. Leaving everything aside, the government seems to have prioritised the sole agenda of holding the elections on March 5. The tenure of the commission formed to probe the killings and devastation of the Gen-Z movement has been extended for the third time. The report of the commission is likely to be submitted only after the elections. Hence, the people will not be able to recognise the stakeholders and culprits of the violent Gen-Z movement before the polls. In addition, the incumbent government is blatantly favouring a particular political party. A couple of ministers of the so-called civil government have resigned midway to join the Rastriya Swatantra Party (RSP). Moreover, the Office of the Attorney General (OAG) has maliciously directed the withdrawal of organised crime and money-laundering charges against RSP Chairman Rabi Lamichhane. As solitary withdrawal of the charges against Lamichhane was not legally possible, the OAG attempted to withdraw similar charges filed against all the defendants associated with Lamichhane-involved cooperative fraud cases. The verdict on the OAG's decision to withdraw these charges against Lamichhane and co-accusers is sub-judice in the Supreme Court. However, this malevolent act of the OAG must have drawn the attention of the FATF – prospective evidence that might prompt Nepal's downgrade to the blacklist. The RSP that claims to be the torch-bearer of good governance is deviously mum on this issue. The political outfit that claims to comprehend the best brains of the country has prioritised the political career of its leader over the overall financial reputation of the country. This is definitely a false-start for the alternative claiming party that has vowed to reform Nepal by implementing good governance and diminishing state-sponsored corruption. Such mass-pleasing tactics might yield temporary success in a country with low social awareness and limited literacy, but they are likely to backfire in the long run. Hence, the RSP, a rapidly flourishing party, should prioritise resolving Lamichhane's pending cooperative fraud cases through legal channels rather than taking illegitimate shortcuts. Time is running out for Nepal to exit out of the FATF grey list. Instead of implying necessary measures to reform Nepal's financial standing in line with the FATF call for action, the government is jeopardising the overall economic status by showing leniency towards selected sub-judice high-profile money-laundering charges. If this trend persists, Nepal's FAFT black-listing is definitely on the cards. Dr Joshi is a senior scientist and independent opinion maker based in Germany pushpa.joshi@gmail.com