Financial Crimes and threats raising in Nepal

Nepal faces a complex array of financial crimes, including money laundering, terrorist financing, corruption, cybercrime, and fraud, exacerbated by cross-border vulnerabilities and regulatory weaknesses.

Nepal faces a variety of financial threats
Fraud: A traditional economic crime that involves deception to gain an illegal financial advantage. Fraud can include identity theft, counterfeiting, and falsifying business records. In Nepal, fraud can also involve foreign employment, bank fraud, and paramedical membership.

Tax evasion: A widespread financial crime in Nepal, often involving the use of fake value-added tax receipts.

Money laundering: A relatively new economic crime in Nepal, but one that has been intensified by economic reforms. Nepal lacks legislation to make money laundering a criminal offense.

Terrorist financing: A financial crime that Nepal faces.

Corruption: A financial crime that Nepal faces.

Cybercrime: A financial crime that Nepal faces.

Financial crimes can have serious consequences for victims, including financial ruin, emotional trauma, and long-term repercussions like debt and poverty.

The 'Strategic Analysis Report 2024' released by Nepal Rastra Bank last November also highlighted the recent rise in financial fraud and suspicious transactions through cyber means. It has been shown to be increasing over the years. The report shows that payment-related cybercrime is widespread.

It has been found that the main methods used for cyber-based fraud are gift and parcel fraud, fraud through social media, fake online trading platforms, OTP fraud, lottery fraud, etc. Of the suspicious transactions and financial payment details, 63 percent were reported to have been made through cyber means.

Most of the fraud-related incidents have been referred to the Nepal Police, Central Bureau of Investigation, and some have also been referred to the Revenue Investigation Department and the Money Laundering Department.

The report shows that the most people involved in cyber fraud and suspicious financial transactions are youths aged 19 to 24, followed by youths aged 25 to 30. Of those involved in such activities, 70 percent are between the ages of 19 and 30.

Cyber-related wrongdoings Among the victims, the highest number are students, followed by employees. Farmers, proprietors, fruit and vegetable sellers, housewives and the unemployed have also been found to be involved in such activities.

The highest number of cyber fraud incidents were seen in Bagmati Province, followed by Madhesh Province and Koshi Province. The report said that cyber fraud It focuses on who is involved in wrongdoing related to financial transactions through the medium and what needs to be done to control it.

Sending gifts, increasing social media 'impressions', sending iPhones, online trading, providing 'OTT' services, accessing bank and wallet accounts This type of fraud is often committed by using methods such as yawning.

Similarly, such frauds are common by offering services such as doubling money, investing money in cryptocurrencies, investing money in network marketing, finding rooms and flats online, and paying for exams such as PTE and IELTS online.