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The recent inclusion of Nepal in the Financial Action Task Force (FATF) 'gray list' presents both immediate challenges and opportunities for systemic reform for Nepal.

The FATF Plenary that concluded in Paris on Friday decided to include Nepal and Laos on the list. This follows the Asia Pacific Group's mutual evaluation report which identified significant deficiencies in Nepal's anti-money laundering framework.

“In February 2023, Nepal made a high-level political commitment to work with the FATF and Asia Pacific Group (APG) to strengthen the effectiveness of its anti-money laundering and combating the financing of terrorism (AML/CFT) regime,” the FATF said. “Since the adoption of its mutual evaluation report in August 2023, Nepal has made progress on some of the actions recommended in the report, including streamlining mutual legal assistance (MLA) requests and increasing the capabilities of the Financial Information Unit (FIU).”

The APG's third mutual evaluation report of 2023 had highlighted various weaknesses in Nepal's anti-money laundering and counter-terrorism financing controls. FATF has been evaluating the status of any country in controlling money laundering and terrorism financing based on 11 effectiveness indicators and 40 technical indicators. FATF has concluded that Nepal has not been able to demonstrate full effectiveness in any of the 11 prescribed effectiveness standards. According to APG's latest report, Nepal has not been able to achieve full or substantial progress in any of these 11 indicators.

The gray-listing could have far-reaching implications for Nepal's economy. International financial institutions now onwards are likely to implement enhanced due diligence measures for transactions involving Nepali entities. This can affect trade financing and remittance flows which are  very crucial components of Nepal's economy. Likewise, the country might face increased transaction costs and delayed processing times for international transfers. More importantly, this could deter foreign investment at a time when the country is seeking to attract international capital for its development projects. The increased perception of risk could lead to higher borrowing costs and more stringent lending conditions in international markets.

The FATF, however, has provided Nepal with a clear, albeit challenging, pathway to exit the gray list by January 2027. The seven-point action plan encompasses comprehensive reforms, from enhancing public awareness about money laundering risks to strengthening technical compliance in preventing terrorism financing, improving risk-based supervision of commercial banks, higher risk cooperatives, casinos, dealers in precious metals and stones and the real estate sector, and demonstrating identification and sanctioning of hundi operators.

Suman Dahal, the director general of the Department of Money Laundering Investigation, says Nepal has already begun addressing these challenges. “Instead of getting entangled in many small financial crimes, we will now focus on major crimes. We will work by setting thresholds for this purpose," he added. 

The focus appears to be on three critical areas: improving investigative capacity, increasing prosecutions of financial crimes and enhancing asset seizure mechanisms. One noteworthy intervention is the preparation to implement new technological solutions, including KYC software and integrated data management systems. These technological upgrades, if successfully implemented, could significantly improve Nepal's ability to monitor and prevent financial crimes.

The success of Nepal's efforts will largely depend on its ability to translate plans into action. The country's previous experience with the gray list (2010-2014) should provide valuable lessons for implementing sustainable reforms rather than quick fixes.

The real measure of success will not merely be exiting the grey list but establishing a robust, transparent financial system that can effectively prevent and combat financial crimes. This could position Nepal as a more attractive destination for international investment and trade in the long term.

As a decor enthusiast, you are always on the hunt for something novel to add to your house. Perhaps you want a new centerpiece for the dining table or you think your living room walls could use something else besides that lone clock and the painting you have had for years. Sometimes, you suddenly get the urge to replace the vases around the house with something spectacular. Come to think of it, you need new planters as it’s time to repot your green babies. But where can you find decor items that aren’t mundane and don’t cost an arm and a leg? This is where you might be stumped. Here is a carefully curated list of places where you can pick up some super interesting things for your home. 

Toit Studio

This ceramics studio, located in Sanepa, Lalitpur, has an interesting range of vases, planters, plates, mugs, jugs, and bowls and trays that you can use in the kitchen or bathroom, among other things. There are a variety of shapes and sizes available, and they are really aesthetic. Most of the things you find here are stuff that you might have seen on Pinterest. Pick a piece or two to change the look of your space. The good thing is that the price range is affordable. But they don’t accept cards so make sure you have digital payment or cash with you when you go there. 

Sana Hastakala

Founded in 1989 and backed by UNICEF then, Sana Hastakala is an NGO that empowers marginalized communities through traditional skills and modern techniques. It’s a treasure trove of Nepali handicrafts. From rugs and table runners to felt shoes, slippers and more, there’s a lot of good stuff here. The prices, we feel, are cheaper than other handicraft stores in Kathmandu. The quality of the products is top-notch. The outlet is located in Jhamsikhel, Lalitpur near the Army Chief’s residence and it’s open from Sunday to Friday from 10 in the morning to six in the evening. We recommend going with a friend as you might need help deciding what to buy as there’s just so much to choose from. 

Deego Nepal

Deego Nepal is a sustainable lifestyle brand founded in 2019. They avoid plastic in their products which are crafted from eco-friendly materials like bamboo by women in Bardiya, Dang, and Kapilvastu. They have meticulously woven baskets, trays, placemats, and coasters among other things. All this can add a touch of rustic charm to your decor. Consider replacing your regular stools with bamboo stools from Deego Nepal to infuse nostalgia and warmth into your space. The items might be a little on the pricier side but considering their quality and that they are mostly handmade it’s justified. They have a physical outlet at Bhanimandal, Lalitpur, but you can also buy their products online or from different concept stores and marts in the city. 

Kamakhya Decor

A lot of stores customize furniture pieces these days. You can show them a photo of the design you want and they will be able to replicate it for you. Kamakhya Decor in Naxal, Kathmandu, is a good place to do that. They have a range of fabrics, colors, and materials to make all kinds of items according to your needs. They will also do it for cheaper than most places. There are some readymade items at the store if you need to replace something at home and can’t wait. But they will make your order in a week or less so even that shouldn’t be a problem. They have a range of cabinets, side tables, racks and other functional but pretty things. 

Masta Kala

The company was founded in 2018 with an aim to create unique, functional products that resonate with people’s emotions. It draws inspiration from Nepal’s rich cultural heritage. You get a range of elegant home decor items at Masta Kala which is located at Sanepa Chowk in Lalitpur. You can also personalize items like key holders and name plates among other things. Be warned though, a trip to Masta Kala can leave your purse lighter as you will want to buy everything you see. The store is pleasing and makes shopping a relaxing experience. 

Pia Nepal

If you don’t want to hunt around for the perfect piece that can be a focal point in your home, and don’t mind spending a little more for it, Pia Nepal could be your option. An artisanal luxury brand, it has everyday items like lamps, bowls, and wall hangings that can lend a regal vibe to your space. The items are carefully created to feel like a special piece and you can see perfection in the details. We feel their products, however small or big, add a subtle charm to our spaces. It’s about an understated elegance that you won’t get anywhere else. 

Out of the many bookstores in Kathmandu and Lalitpur that I visit frequently, I find the one at Patandhoka, Lalitpur, called ‘Patan Book Shop’ to be the most useful and interesting. It’s a small space but the collection it has is simply amazing. There are shelves upon shelves filled with books as well as books piled high on stools, benches, and tables. It’s a little out of the way and I struggle with parking in the area so I don’t visit it as often as I would like to but whenever I can’t find a book or I want to discover some new titles or authors, I make it a point to go there.

I think I can easily spend a few hours at this bookstore. If you go there, just don’t browse through their new releases section. Take your time to go through the shelves. You will definitely come across some treasures. I found ‘A Mirror Made of Rain’ by Naheed Phiroze Patel here. I hadn’t heard about the author or the title and the cover art and the blurb both caught my attention. The fact that the book was dedicated to the author’s father, Phiroze, who, she says, would always find a kind word for anybody who needed one made me unable to put it down. I feel first novels and those dedicated to parents hold a lot of promise as there’s a lot at stake there.

The story is about Noomi Wadia, a young woman with a fraught relationship with her mother. Her father, Jeh, is supportive and she’s close to him but her mother has mental health issues and is also battling alcoholism. Noomi spends most of her childhood and teenage years fearing her mother and, along with Jeh, trying to get Asha to stop drinking. It takes a lot of her energy and time. But alcoholism is a tricky and difficult situation. No one and nothing can force an alcoholic to stop drinking. It puts a lot of strain on a family. Eventually, Noomi finds herself unable to cope and leaves home.

Years later, she’s all set to get married to Veer, someone she met at a pub and felt an instant connection with. But Noomi has inherited her mother’s self-destructive behaviors. She’s unable to cope in high pressure situations without a drink to calm her nerves. She, like everyone who enjoys alcohol a little too much, thinks she has it under control. But she carries miniature vodka bottles in her handbag and can never stop at one or two drinks at parties. Soon, she realizes she must control her impulses or risk everything she loves.

While I was reading A Mirror Made of Rain, I was unable to think of much else. The story and Noomi, Jeh, and Asha were on my mind all the time. It’s a dark and disturbing novel about what addiction can do to a family and how every person has his/her way of dealing with the trauma. The author has fleshed out the characters really well and you can see what drives them to do the things they do and empathize with them. Even the relatives and friends, who make occasional appearances, are apt depictions of our overly curious to the point of intrusive society.

All in all, A Mirror Made of Rain is a brave and unflinching story that deserved to be told. It’s a reminder of the fact that the most potent sorrows and sufferings are often generational and that children who see too much of it early on carry battle wounds of sorts for the rest of their lives, and that their perception of love is perhaps forever skewed. A word of caution though: Peppered with Hindi words and phrases, reading this book can sometimes be a bit jarring, especially if you aren’t familiar with the culture and its slangs but it’s just a minor hiccup. 

A Mirror Made of Rain

Naheed Phiroze Patel

Published: 2021

Publisher: Fourth Estate

Pages: 285, Paperback

After Syange, the terrain transformed into a rugged beauty, with challenging climbs and narrow roads adorned with rocks and gravel—tricky to navigate. Raju took it in stride, but I had to dismount frequently and push my bike. The elevation gain had begun, and we felt a slight chill in the fresh morning air, a reminder of the breathtaking beauty surrounding us. 

We stopped at Jagat (1,300 meters) to regain our breath and rest briefly. Like other towns, we left behind a row of back-to-back tea shops and lodges flanking the road with tilting, colorful roofs, primarily two-story. We had a cup of tea, some biscuits, and a brief chat with Ghale Gurung, the owner.  

Upon my casual questioning about his business, he shook his head. “Not as it used to be after the road opened. Trekkers prefer traveling by jeep to Chame, the district headquarters of Manang. The teahouses have lost their business by as high as 60 percent, if not more; many have quit,” he said, his frustration echoing the plight of many local businesses affected by modernization. 

A little further, we ran into a group of American hikers taking a break by the roadside. They were hiking back from Manang. One of the guys looked my age, but when I casually asked, I found he was only 65. He looked surprised when I told him my age and that we were doing the Annapurna Circuit on our bicycles.

For the next two hours, we slugged it out on grueling uphills, an isolated gravelly road across forested hills with sheer escarpments that dropped way down to Marshyangdi. But if anything, we were still pedaling across Lamjung, the Manang border a long way away. We were already late for lunch but mighty relieved to see a town in the distance, Chamje 1,430m). 

Well, well, well, what do you know—another colossal waterfall! Fascinated, we gorged on our dal-bhat, peering out the tea-house window, the waterfall across the Marshyangdi, cannoning down a steep hill that looked like 100 meters to me. It was called the Boong Jharna (waterfall). 

Chamje, as the teahouse owner told us, was also a popular haunt for water canyoning adventure sports. As we left, my eyes fell on hedges of flaming crimson poinsettia in full bloom around the small settlement. To add to the appeal, clumps of yellow marigolds appeared scattered around the locale, a vibrant display of the local flora that adds to the village’s charm. 

It took us barely 20 minutes to arrive at the main town of Chamje, a tight cluster of teahouses and hotels on a sharp incline fringing both sides of the road.

Hardly had we left behind the town, an excited Raju hollered out: “Another waterfall!” A small crowd, primarily motorbikers, was gathered at a teahouse next to the waterfall to watch the arresting sight. 

It was called the Octopus waterfall and cascaded down to the roadside in a dramatic multi-pronged configuration that evoked the flailing tentacles of an octopus, thereby dubbed with that name, we figured. This unique natural formation, with its striking resemblance to an octopus, is a testament to the diverse and awe-inspiring landscapes of the Annapurna Circuit. 

Although we ran out of time, we couldn’t resist and hung around for quite some time. “Wow! Lamjung seems brimming with incredible waterfalls,” said Raju, sounding euphoric. Suddenly, it struck us that we did not have all the time in the world, and we hastened to spin; it was already past 3 pm. 

The sun lurked on our shoulders as we left, warning us with each spin that it would get dark soon. The road got rockier and narrower as we huffed it up steep ascents, Tal still dim and distant as far as we could stretch our eyes.

When we sighted Tal (1,700 meters) from a bluff, way up, outstretched along the banks of Marsyangdi, it was a sight for sore eyes. However, the dirt roadway to Manang did not lead through the imposing city across the Marshyangdi. 

Darkness soon crept in after Tal, and the road turned into a mess. Navigating the slush, the road spattered with rocks and debris from the aftermath of the post-monsoon flooding and landslips, over the narrow beam of our bicycle light was anything but tricky, nay dangerous. The road conditions were treacherous, with the constant threat of slipping or hitting a rock, making our progress slow and cautious. 

Then we froze in our tracks. It looked like we had hit an impasse as a frightening water chute fell with a rumble at a curb, surging over the road, inundating it, and crashing down a ravine to our right. 

“Ke garne (what to do)? It looks like we are stuck,” I said, mighty alarmed, and looked at Raju. The pool appeared deep, but we could not figure it out. We could not walk our bikes across either, as the entire road was waterlogged, and it was not wise to wet our only pair of shoes. 

“Uncle, I’ll attempt first to pedal across,” Raju said. I genuinely admired his grit and gumption at such tight corners; he always held on to a forerunner. Over the din of the crashing water, Raju, without a second thought, tore across; I watched with bated breath. Thank heavens, he made it! 

It was my turn, now. It was a moment of truth for me; with my heart in my mouth, I shot at the pool. And I did it, too! Phew! Granted, we had overcome the hurdle but landed with dripping shoes soaked to the socks as the water level almost reached the bike’s mid-tire.

I was past hope about making it to our day's layover at Dharapani but dragged along the pitted and muddy road, which seemed to play tricks on my eyes in the narrow flare of my light. After about 7:30 pm, we finally arrived at Dharapani (1,860 meters), an elevation gain of almost 800 meters that day, and it felt pretty cold. 

What on earth! To our misery, no lodges had a vacancy. However, one staff member from the hotel we had dropped by volunteered to scout around and eventually managed a crummy room for us. Near desperation, the thought that we might have to bunk under an open sky made me shiver involuntarily. 

Cold, exhausted, and wet, we hit the bunk early after a hasty supper, with a comforting and lasting feeling that we had, after all, a roof over our heads—and thankful to the guy for doing us a good turn. The relief and gratitude we felt at that moment were palpable.

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