Nepali banks, companies act as channels for Iran and China to deceive US sanctions: Report
KATHMANDU: Some banks and companies in Nepal are allegedly involved in transferring money obtained suspiciously from oversees, an investigation made by the Center for Investigative Journalism (CIJ), Nepal along with the International Consortium of Investigative Journalists (ICIJ) and BuzzFeed has revealed.
The investigative report shows the involvement of Nepali firms and banks attempting to deceive US sanctions on trade especially on Iran and China.
Based on a top-secret document prepared by ‘Financial Crimes
Enforcement Network’, a government body that monitors financial transactions system in the US, the collective investigation report has been named ‘FinCEN Files’.
According to it, between December 2006 and March 2017, 9 banks, 10 companies and various individuals in Nepal were found to have transacted (sent/received) suspicious funds in the name of cross-border trade. “This shows that some Nepali business entities are linked to the international smuggling of gold, antiquities, bitumen, and telecommunication equipment. Standard Chartered Bank, Prime Commercial Bank, Bank of
Kathmandu, Nepal Investment Bank, Everest Bank, Mega Bank, Himalayan Bank, Apex Development Bank of Kaski, and Nepal Bangladesh Bank are mentioned in the list of banks that are involved in transferring money suspicious,” the 25 paged report stated.
As per the report, a suspicious amount of $292.7 million has been transacted through these banks and companies during the period of 11 years. It has named Rauniyar Brothers & Company, SubhaSamriddhi Traders Pvt. Ltd., Shasta Trading Company, Setidevi Export Import Pvt. Ltd., LD International Pvt. Ltd., Felt and Yarn Pvt. Ltd., Woman’s Paper Crafts, Acme
Money Transfer Service, and Sunny Enterprises as the companies allegedly involved in suspicious cross-border transactions.
“Through these dubious Dubai based companies, the Rauniyar family has traded and transferred suspicious money in the name of import and export of bitumen and petroleum products in Nepal. Rauniyar Brothers and Shubha Shambridhi Traders have repeatedly opened Letters of Credit from Standard Chartered Bank of Kathmandu. In four years, these two companies have sent payments of $71.4 million to different countries, including Dubai,” the report revealed.