KATHMANDU: The Central Bank, Nepal Rastra Bank (NRB), has instructed banks and financial institutions (BFIs) to tighten the procedure of import of goods to discourage and control money laundering possible through import and export business.

In light of payment for import of goods being settled illegally, the NRB has instructed all the banks and financial institutions (BFIs) to crack down on it.

The Central Bank concluded that the use of black money (undisclosed amount) has increased in import and export trade.

The NRB, issuing a statement on Tuesday, instructed BFIs to tighten the procedure of import of goods to discourage and control money laundering possible through import and export business.

It has also instructed to open a draft, Telegraphic Transfer (TT) or letter of credit (LC) for the import of goods only in cases when the prices between international market and during import/export did not have large differences and seemed real enough.

Businesses had lodged a complaint stating that imports were done illegally as the Central Bank tightened its noose on imports.

Incidences whereby traders import goods with low invoices and pay the remaining amount through illegal channels have also been found.

Lately, the Central Bank has also instructed BFIs to analyze the international value of the goods while opening a TT or LC for import and export.