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 released on Sunday shows the involvement of Nepali companies 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 ‘FinCEN Files’, 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 based on covering Nepal stated.
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FinCEN Files showed involvement of 10 Nepali companies that directly sent or received suspicious funds. As per the report, a suspicious amount of 292.7 million US Dollars has been transacted through these banks and companies during the period of 11 years. The report has named Rauniyar Brothers & Company, SubhaSamriddhi Traders Pvt. Ltd., Shasta Trading Company, Setidevi Export Import Pvt. Ltd., L.D. 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.
Amongst the companies, Rauniyar Brothers & Company, Shubha Shambridhi Traders, Private Limited, based in Parsa District of Nepal have allegedly conducted suspicious transactions via a Dubai based company called ‘Kite International FZE,’ whose main business in to import and export petroleum products such bitumen, engine oil for vehicles, lubricants, and rubber processing oil.
According to FinCEN, Zhongxing Telecommunication Equipment (ZTE) Corporation, China’s largest telecommunications service provider company, remitted 213.3 million US Dollars to other countries, including Nepal, from March 17, 2011, to March 1, 2017. ZTE had done the transaction through Beijing-based China Construction Bank. The US-based New York branch of China Construction Bank had discovered that the transacted amount was suspicious.
In the duration of three years and four months from November 4, 2013, to February 27, 2017, ZTE was found to have deposited some amount in Nepal Investment Bank, according to ‘FinCEN’. In the description, four separate amounts: $5,709.09, $5,244.76, $40,357.75 and $10 are found to be deposited by ZTE Corporation in Nepal Investment Bank, Kathmandu.
ZTE is one of the leading exporters of telecommunication equipment in Nepal. Soon after the Gorkha Earthquake of 2072 B.S, ZTE was importing materials for constructing a tower for Ncell-a telecommunication company based in Nepal. There was no response from the ZTE on the report.
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