Nepal Rastra Bank (NRB) registered 7,338 cases of suspicious transactions in the fiscal year 2023/24, marking a 24% increase compared to the previous fiscal year.
According to an NRB report, banks and financial institutions (BFIs) reported 1,403 more suspicious transactions to the Financial Information Unit (FIU) during the review period. In FY 2022/23, NRB recorded 5,935 such cases.
The rise in cases is attributed to NRB’s stricter measures to track suspicious financial activities. However, despite the increase, only 1,635 cases (22% of the total) were scrutinized by the central bank.
NRB forwarded 889 cases for further government investigation in FY 2023/24, compared to 505 cases in the previous year.
Surge in Suspicious Transactions Over Six Years
Suspicious financial transactions in Nepal have increased nearly tenfold in six years. In FY 2018/19, only 787 such cases were reported by BFIs.
Nepal remains on the Financial Action Task Force (FATF) greylist since February due to lapses in monitoring money laundering and terrorist financing. In response, NRB has intensified compliance efforts.
Strengthening Financial Surveillance
- goAML System: A total of 1,639 government regulatory entities are now integrated into goAML, a system developed by the United Nations Office on Drugs and Crime (UNODC) to combat financial crimes.
- Reporting Obligations: BFIs must report transactions exceeding NPR 1 million in cash or cross-border transfers. Cooperatives, money changers, and insurers also have specific thresholds for reporting to FIU-Nepal.
Future Plans
FIU-Nepal plans to enhance sector-specific reporting templates under the improved goAML system. The new risk-based methodology aims to refine transaction analysis, pattern detection, and financial crime monitoring for more effective oversight.
