Kathmandu-For the past 16 months, Nepal has remained on the Financial Action Task Force (FATF) grey list. Although the listing has created some obstacles for the country's international financial transactions, it has not had a significant impact on the broader economy.

However, the situation has been particularly challenging for technology professionals and entrepreneurs working from Nepal. Many Nepali tech entrepreneurs who sell services overseas previously relied on US banking channels to receive payments by opening accounts remotely in the United States.

Since Nepal was placed on the grey list, it has become much more difficult for Nepalis to access such banking facilities without being physically present in the US. As a result, many entrepreneurs have started shifting their operations to Dubai and Singapore.

Although payments for services exported from Nepal can technically be received directly in Nepal, many entrepreneurs consider the domestic payment system neither sufficiently reliable nor convenient. Instead, they have preferred to receive payments through the US banking system and transfer the funds to Nepal when suitable. In many cases, these transfers entered Nepal as remittances, contributing to the country's inflows from the United States.

After Nepal's grey listing, however, financial institutions have imposed stricter verification requirements. For non resident Nepalis, physical presence has become mandatory for opening or maintaining certain banking facilities.

This has prompted many Nepali entrepreneurs to relocate, with Dubai emerging as the preferred destination, while others have moved to Singapore.

Although the Government of Nepal has introduced policy measures to facilitate international payments, entrepreneurs say the system still lacks credibility and efficiency. While those who cannot travel abroad often receive payments in Nepal, most continue to use overseas payment channels. Many, however, avoid discussing these arrangements because they fear legal action or regulatory scrutiny.

The disruption of what had been an informal but convenient payment mechanism has forced Nepali entrepreneurs to look for alternative destinations.

Thousands of individuals and companies in Nepal earn their income through the technology sector. The industry generates more than Rs 100 billion in foreign exchange earnings each year. However, the absence of an efficient international payment mechanism has forced businesses to rely on more complicated and expensive alternatives.