Finance Minister Dr. Swarnim Wagle arrived in Washington, DC, on Sunday night, leading a two-member delegation to seek international support for Nepal’s post-flood reconstruction efforts and broader economic reforms. The visit also aims to strengthen partnerships and address Nepal’s continued presence on the Financial Action Task Force (FATF) grey list.
Upon his arrival, Minister Wagle was received by Nepal’s Acting Ambassador Sharad Raj Aran and officials from the Nepali Embassy. He is scheduled to meet US Treasury Secretary Scott Bessent and World Bank Group President Ajay Banga on Monday.
Discussions during the visit are expected to focus on enhancing bilateral cooperation, supporting Nepal’s efforts to exit the FATF grey list, and advancing the country’s economic reform agenda. The Nepali delegation will also seek additional assistance for the reconstruction of physical and economic infrastructure damaged by recent floods in the Bhotekoshi area.
Addressing the FATF Grey List
Nepal remains on the Financial Action Task Force (FATF), an international body combatting money laundering and terrorist financing, grey list, also known as the Increased Monitoring list, a decision reaffirmed at the FATF plenary meeting in Paris in June 2026. The body first placed Nepal back on the grey list in February 2025 due to identified weaknesses in its anti-money laundering and counter-terrorist financing systems.
While the FATF acknowledged Nepal’s political commitment since February 2025, it highlighted deficiencies in implementation, prosecution, and asset forfeiture. The FATF has provided Nepal with a six-point action plan. This plan includes improving understanding of money laundering and terrorist financing risks, enhancing risk-based supervision in sectors like commercial banks, cooperatives, casinos, and real estate, and identifying and acting against illegal Hundi/money transfer service providers.
Furthermore, Nepal is tasked with increasing the capacity and coordination of authorities for money laundering investigations, boosting investigations and prosecutions, and implementing effective measures to identify, freeze, seize, and confiscate proceeds of crime.
Bhotekoshi Flood Reconstruction Needs
The Bhotekoshi river area experienced devastating floods around August 26, 2026, causing extensive damage to hydropower projects, physical infrastructure, and private property. The floods disrupted 430 megawatts of electricity generation capacity.
A global report on September 13, 2026, estimated total damage at Rs 63.08 billion, affecting 7,570 private buildings. However, Nepal Electricity Authority, on October 2, 2026, revised its estimated damage from the Bhotekoshi floods to Rs 21 billion. Prime Minister Balendra Shah, addressing the United Nations General Assembly on September 24, 2026, stated that at least 1,400 people died and over 6,000 remain missing due to the floods. As of October 2, 2026, 25 police personnel are still missing, with three bodies recovered.
Preliminary damage assessments suggest that reconstruction efforts could require resources equivalent to approximately 10 percent of Nepal’s Gross Domestic Product.
Economic Reforms and Investment Mobilisation
Minister Wagle’s visit also aims to attract greater investment from development partners and the private sector for key infrastructure projects, including roads and electricity transmission lines. The government intends to leverage such investment to create jobs and expand economic opportunities within Nepal.
During his visit, Minister Wagle is also scheduled to meet senior officials of the US International Development Finance Corporation (DFC), a US government development finance institution, and leading private-sector investors. He has previously asserted that the current government, led by the Rastriya Swatantra Party, is the most private sector-friendly and reform-oriented in Nepal’s history, citing the cancellation of 15 old acts since he became Finance Minister. The government is also preparing to introduce 27 new laws for economic reforms this fiscal year.
