By Our Reporter

The Financial Information Unit (FIU-Nepal) at the Nepal Rastra Bank (NRB) has reported a significant rise in suspicious transaction activities in 2024.

According to its fourth annual newsletter, covering January to December 2024, Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs) submitted by reporting institutions increased by approximately 49 per cent compared to the previous year 2023.

In 2024, the FIU received 9,304 suspicious transaction reports, up from 6,255 in 2023. This marks the highest number recorded since the implementation of the Money Laundering Prevention Act, 2064. Of these, 1,894 reports were analysed, with 1,086 forwarded to law enforcement and regulatory bodies for further action. The remaining 808 were archived for potential re-analysis in case new information collected.

Likewise, threshold transaction reporting also rose notably. The FIU received 1.97 million Threshold Transaction Reports (TTRs) in 2024, compared to 1.78 million in 2023.

These reports involve large-value transactions above a defined monetary limit and are submitted by financial institutions as part of routine monitoring under the Nepal Rastra Bank (NRB) regulations.

Largest number of cases were received from the commercial banks (7713) followed by development banks (612), finance companies (303), stock brokers (290) and payment service provider (166).

In February 2025, FATF decided to place Nepal on the 'Jurisdictions under Increased Monitoring' - commonly known as 'Grey List'.