Suspicious transaction activities surge by 49 per cent: NRB

 Kathmandu, May 20

The Financial Information Unit (FIU-Nepal) at the Nepal Rastra Bank (NRB) reported a significant rise in suspicious transaction activity in 2024.

According to its fourth annual newsletter, covering January to December 2024, Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs) submitted by reporting institutions increased by approximately 49 per cent compared to the previous year 2023.

In 2024, the FIU received 9,304 suspicious transaction reports, up from 6,255 in 2023. This marks the highest number recorded since the implementation of the Money Laundering Prevention Act, 2064. Of these, 1,894 reports were analysed, with 1,086 forwarded to law enforcement and regulatory bodies for further action. The remaining 808 were archived for potential re-analysis in case new information collected.

Likewise, threshold transaction reporting also rose notably. The FIU received 1.97 million Threshold Transaction Reports (TTRs) in 2024, compared to 1.78 million in 2023.

These reports involve large-value transactions above a defined monetary limit and are submitted by financial institutions as part of routine monitoring under the Nepal Rastra Bank (NRB) regulations.

Largest number of cases were received from the commercial banks (7713) followed by development banks (612), finance companies (303), stock brokers (290) and payment service provider (166).

 

Meanwhile, technological infrastructure of the FIU has also been expanded last year. The number of entities connected to the FIU’s goAML system, a platform for digital submission and communication of financial intelligence, grew from 1,496 in 2023 to 1,905 by the end of 2024. These include reporting institutions such as banks, insurers, and remittance companies, as well as law enforcement and regulatory bodies.

Last year, FIU-Nepal onboarded Designated Non-Financial Businesses and Professions (DNFBPs), such as casinos, Dealers in Precious Metals and Stones (DPMS), real estate agents, and hire purchase loan providers, into the goAML system.

Integration also encompassed law enforcement agencies and supervisory bodies, creating a unified platform that brought together all relevant stakeholders. This collective effort significantly enhanced the security of data transmission and improved operational efficiency, Bashu Dev Bhattarai, Head of FIU-Nepal, said in the report.

The Unit also conducted training programmes for its staff and stakeholders which were aimed at enhancing compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) obligations.

According to the FIU, in 2024, a major focus was on the legal reforms and implementation of recommendations mentioned in Mutual Evaluation Report (MER) of Nepal, 2023.

Following Nepal's 2022-23 Mutual Evaluation by the Asia/Pacific Group on Money Laundering (APG), the country was placed 'under observation' by the Financial Action Task Force (FATF).

It said that it was due to some AML/CFT deficiencies, and claimed that in response, the government has made significant reforms, including the amendment of 19 money laundering-related acts, new Money Laundering Prevention Rules (2024), and the National Strategy and Action Plans (2024/25-2028/29).

In February 2025, FATF decided to place Nepal on the 'Jurisdictions under Increased Monitoring' - commonly known as 'Grey List'.

FIU-Nepal is functioning as the primary contact point for communication between FATF- International Cooperation Review Group (ICRG) and APG for Mutual Evaluation and Post-Mutual Evaluation process.

FIU-Nepal continues to support national efforts to exit Nepal from the 'Grey list', read the report.  

It claimed that it is actively involved in domestic and international coordination to combat money laundering, terrorist financing and proliferation financing. 

Published in The Rising Nepal daily on 21 May 2025.