KATHMANDU: On the same day the government moved to appoint Nepali Congress affiliated Dr. Biswo Paudel as Governor of Nepal Rastra Bank, alarming data revealed a significant rise in suspicious financial transactions within the country.
The Financial Information Unit (FIU) under Nepal Rastra Bank reported that suspicious transaction reports (STRs) increased by 49% in 2024 compared to 2023, under the provisions of the Money Laundering Prevention Act, 2008.
The announcement of a political appointee to the central bank—a position meant to regulate such activities—has raised fresh concerns. Dr. Paudel, a former active member of the Nepali Congress and defeated candidate in the 2022 parliamentary election, is set to replace Maha Prasad Adhikari, who was also seen as close to the CPN-UML.
According to the FIU report, the number of suspicious transactions rose from 6,255 in 2023 to 9,304 in 2024. The report also notes that a significant portion of these transactions requires further analysis, with 1,086 reports already forwarded to law enforcement and regulatory agencies for investigation and action.
In addition, the number of threshold transaction reports (TTRs) filed with the FIU rose from 1.78 million in 2023 to 1.97 million in 2024. Similarly, the number of reporting institutions involved grew from 1,496 to 1,905 over the same period.
The growing trend of appointing politically affiliated individuals as governors has led to fears that such transactions may receive implicit protection or go unaddressed, weakening the fight against financial crimes in Nepal.
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