Suspicious Financial Transactions Surge in Nepal, Central Bank Reports

Nepal’s financial system has seen an increase in suspicious transactions, according to a report released by the Central Bank. The report, published by the Financial Information Unit (FIU) of Nepal Rastra Bank for the fiscal year 2081/82, shows that the number of suspicious transactions rose compared to the previous year. The FIU noted that the rise in suspicious financial activities is concerning, especially as Nepal remains on the ‘grey list’ for money laundering.

According to the report, Suspicious Transaction and Activity Reports (STRs/SARs) increased by 30.35% in FY 2081/82. The number of reports rose from 7,338 in FY 2080/81 to 9,565 in FY 2081/82. Of these, 945 reports were forwarded to the Nepal Police and the Asset Recovery Investigation Department for further investigation and prosecution.

In terms of value, reports of suspicious transactions increased by 82.75%, from NPR 23.26 billion in the previous year to NPR 42.51 billion in FY 2081/82.

The annual report also highlights the FIU’s efforts in anti-money laundering, counter-terrorism financing, and preventing the misuse of financial investments for destructive purposes. It details policy and technical measures taken during the year, including guidelines on information security, confidentiality, and monitoring of suspicious and cross-border transactions. Capacity-building, awareness programs, and targeted training for regulatory, law enforcement, and other relevant agencies were conducted throughout the year.

Banks were the largest source of reports, contributing NPR 3.888 billion across 7,303 notifications. Other contributions included development banks (780 reports, NPR 75.96 million), brokerage firms (491 reports, NPR 191 million), finance companies (355 reports, NPR 83.92 million), payment service providers (252 reports, NPR 16.57 million), insurance companies (244 reports, NPR 49.88 million), remittance firms (100 reports, NPR 28.56 million), cooperatives (36 reports, NPR 6.56 million), casinos (2 reports, NPR 0.61 million), hire-purchase firms (1 report, NPR 0.39 million), and microfinance institutions (1 report, NPR 0.11 million).

The FIU also made progress in international cooperation, exchanging 64 reports with foreign financial intelligence units to strengthen efforts against cross-border financial risks, cyber fraud, and emerging criminal trends.

Looking ahead, the FIU has identified risk-based approaches, technology-driven analysis, inter-agency coordination, and compliance with international standards as its priority areas. The unit aims to enhance the quality of financial intelligence analysis and improve both national and international cooperation.

—Nepal News Agency.