Royal Monetary Authority of Bhutan Warns Public of Mule Accounts and Money Mules in Financial Sector
The Royal Monetary Authority of Bhutan (RMA) has issued a public notification regarding the detection of Mule Accounts and Money Mules in the financial sector.
What are Mule Accounts?
A Mule Account is a bank account belonging to an innocent individual who has unwittingly allowed another person to use or operate the account for fraudulent transactions. This unsuspecting person becomes a Mule Account holder, and their legitimate account is transformed into a tool for money laundering or other financial crimes.
What are Money Mules?
A Money Mule is an individual who is recruited to transfer money illegally on someone else’s behalf, often for a fee or commission. These individuals are typically unaware of the illicit origins of the funds or their ultimate destination, making them potentially liable for prosecution under relevant laws.
Public Notification from RMA
The RMA, in a cautionary statement to the public, requests that account holders who have knowingly allowed another person to use their accounts close them by December 31, 2021. Failure to do so will result in the suspension of the bank accounts and freezing of funds without further notice.
Consequences for Mule Accounts
Mule accounts identified by the RMA will be handed over to the law enforcement agencies for further investigation and legal action against those involved in money laundering or fraudulent activities.
What You Can Do
The RMA urges the public to cooperate and report any suspicious transactions or activities to prevent the misuse of their accounts or unwitting involvement in financial crimes. The authorities remind citizens that engaging in such activities is not only against the law but also poses significant reputational and financial risks.
- Report any suspicious transactions or activities to the RMA
- Cooperate with law enforcement agencies to prevent financial crimes
- Close your account if you have knowingly allowed another person to use it
- Be aware of the potential risks involved in money laundering and fraudulent activities