21 arrested in Rs 17.86 billion illegal transaction case

Khila Nath Dhakal

KATHMANDU: Twenty-one money transfer operators have been arrested from various districts across the country on charges of involvement in customs evasion, illegal gold trading, and tax fraud. The Central Investigation Bureau (CIB) apprehended them in connection with illegal transactions amounting to Rs 17.86 billion.

Issuing a press release on Monday, the Bureau announced the arrests. According to CIB spokesperson Superintendent of Police (SP) Sudhir Raj Shahi, the individuals are being investigated under the Nepal Rastra Bank Act, 2058 (2002).

SP Shahi stated that after the suspension of domestic remittance services, the arrested individuals obstructed the formal inflow of remittance money from abroad and conducted illegal financial transactions equivalent to the remittance amounts.

Preliminary investigations revealed that the group primarily targeted migrant workers and students residing abroad. Those arrested hail from Morang, Mahottari, Saptari, Sarlahi, Parsa, Dhanusha, Nawalparasi, Birgunj, and Chitwan districts.

Among those detained, Birendra Prasad Shah and Dipendra Prasad Sah from Morang alone is found to have conducted illegal transactions worth Rs 2.82 billion, according to SP Shahi. Further investigation into the case is ongoing.

The spokesperson, Shahi, stated that the arrested individuals misused digital wallet services and money transfer companies to carry out illegal transactions worth billions of rupees.

He revealed that they were involved in money laundering by making illegal money appear as remittances coming from abroad, thereby legitimizing it within the country.

They used money mules (individuals who carry money) for these transactions, which were made to look like remittances from abroad.

Large sums of cash were deposited into bank accounts operating in Nepal. Then, this money was transferred to the accounts of relatives abroad under the guise of fake remittances, using digital wallets like Sajilo Pay and Paywell Nepal Pvt. Ltd., as well as various money transfer companies.

Shahi emphasized that such transactions not only defraud the government but also create vulnerabilities in the country’s financial system.