According to the Economic Survey 2082/83, recently tabled by the government in the Federal Parliament, the Financial Information Unit (FIU) under the Nepal Rastra Bank (NRB) has witnessed a steady and alarming rise in suspicious activity reports.
A Record-Breaking Surge: Over 9,500 Reports in a Single Year
Official data from the Economic Survey reveals that a staggering 9,565 suspicious transactions were reported in the fiscal year 2081/82 alone. Driven by the booming penetration of digital payment systems, this figure marks a record high—and financial experts warn that the upward trajectory has continued into the current fiscal year 2082/83.
The New Face of Financial Crime
Reports submitted to the FIU by banks, financial institutions, and payment service providers highlight online fraud, cryptocurrency and illegal betting and velocity risks in technology-driven financial crime.
While the Economic Survey emphasizes the need for a robust financial system and strict governance, a widespread lack of digital literacy and weak cybersecurity infrastructure continue to put public wealth at risk while fueling the informal economy.
Bottlenecks in Investigation and Prosecution
Despite the thousands of red flags raised, actual investigations and legal actions remain sluggish. Following preliminary analysis, only a fraction of these cases are forwarded to agencies like the Department of Money Laundering Investigation (DMLI), the Central Investigation Bureau (CIB) of Nepal Police, and the Department of Revenue Investigation. Insiders attribute this bottleneck to a severe shortage of skilled manpower and a lack of modern digital forensic technology required to audit complex digital paper trails.
Regulatory Pressure Mounts on Banks and FinTechs
In response to the growing threat, the Nepal Rastra Bank (NRB) has tightened the screws on financial institutions and digital wallet operators. The central bank has directed them to urgently upgrade their Anti-Money Laundering (AML) and Know Your Customer (KYC) frameworks, urging the adoption of Artificial Intelligence (AI) technology to detect anomalies in real time.
