Financial Crime World

Title: Financial Crimes Surge in Nepal: Rs36 Billion Stolen in Eight Years, Experts Warn of Advanced Threats

The Kathmandu Post, 09 May 2018

Rs36 Billion in Financial Crimes Reported in Nepal over the Past Eight Years

According to newly released statistics from the National Banking Institute (NBI), nearly Rs36 billion worth of financial crimes have been reported in Nepal over the past eight years [Subba, 2018]. This alarming figure was revealed during a conference held in the capital on Monday [The Kathmandu Post, 2018].

NBI’s Warning: The Growing Threat of Financial Crimes

The one-day conference, held in association with India’s Fintelekt, brought together experts and industry insiders to discuss various challenges and countermeasures against financial crimes. Sanjib Subba, CEO of NBI, expressed concern over the increasing prevalence of financial crimes worldwide and their potential impact on Nepal.

“As we move towards digitization, we may encounter financial crimes that we haven’t encountered before. It’s crucial that we stay prepared for all eventualities.” [Subba, 2018]

Common Types of Financial Crimes: Focus on the Remittance Business

During the conference, speakers provided insights into common types of financial crimes, with a particular focus on the remittance business.

  • Priyanka Kadam, director of regulation at First Data, shared insights about various fraud categories and effective strategies for prevention.
  • Prasun Singh, chief of Internal Vigilance at HDFC Bank, discussed advanced fraud-detection techniques employed within the banking industry.

Primary Areas of Banking Fraud

Nepal Rastra Bank’s Regulation Department executive director, Narayan Paudel, emphasized two primary areas of banking fraud:

  1. Weak corporate governance
  2. Threats posed by technological advancements

Addressing the Roots of Fraud

Sashin Joshi, a former banker, stressed the importance of addressing the following key elements contributing to fraud:

  1. System breakdown
  2. Collusion
  3. Negligence
  4. Insufficient due diligence

Cooperation and Collaboration

DIG Pushkar Karki addressed the audience, expressing his concerns about the heightened risk of fraud due to the growing number of transactions. He proposed a collaborative effort between banks and the Commission for the Investigation of Abuse of Authority (CIB) to create a secure financial environment.

Conclusion: Call to Action

The conference, attended by over 100 senior-level bank employees, concluded with a call to action, emphasizing the need for increased vigilance, awareness, and cooperation to mitigate the threat of financial crimes in Nepal.