FIU-Nepal Reports Surge in Crypto Money Laundering Activities
FIU-Nepal Reports Surge in Crypto Money Laundering Activities
The Financial Intelligence Unit (FIU) of Nepal has highlighted a rise in the misuse of crypto assets in the country. The agency, which closely monitors the cryptocurrency sphere, has stated that the laundering of illicit funding through cryptocurrencies has sharply increased. The Nepal Rastra Bank has released its 'Strategic Analysis Report', claiming that notorious actors have been converting illegally obtained funds into cryptocurrencies due to their anonymous transactions.
Cryptocurrencies like Bitcoin and Ether offer an element of anonymity to transactions, complicating law enforcement efforts. FIU-Nepal noted, “conversion of proceeds of fraud to cryptocurrency or for online betting purposes is observed frequently,” making it increasingly difficult for Financial Intelligence Units (FIUs) and law enforcement agencies (LEAs) to track down these illicit funds.
FIU's Response and Recommendations
Nepal's FIU is analyzing actions taken by other countries to mitigate cyber-enabled frauds. Additionally, the agency plans educational campaigns to raise awareness about the financial risks associated with volatile crypto assets. Nepal is also exploring a platform to trace information across financial institutions to intercept illicit proceeds.
In 2023, Nepal mandated that all internet service providers block access to crypto trading platforms, emphasizing that utilizing cryptocurrencies as a monetary instrument is illegal in the country.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.