Nepal, March 23 -- A couple of important and interrelated issues have arisen in recent weeks for the KP Oli government. How they are handled-and with what urgency-has the potential to inflict a lasting impact on Nepal. On February 21, the Financial Action Task Force (FATF) placed Nepal on its grey list. The country risks being relegated to the dreaded black if no necessary reform is carried out within two years; corruption and money laundering are at the root of it all. At the same time, widespread corruption and a lack of good governance have elevated former King Gyanendra's popularity to a new height. On March 10, tens and thousands welcomed him at Kathmandu's airport upon his return from Pokhara.

The FATF is a Paris-based anti-money l...