In a move to crackdown on illicit financial activities, the Nepal Rastra Bank (NRB), the country’s central bank and regulatory authority, has launched an investigation into two prominent Nepali payment service providers – Prabhu Money Transfer and Sajilo Pay Payment Services. The investigation stems from suspicions of their alleged involvement in unlawful businesses such as hundi (informal money transfer), gold smuggling, and cryptocurrency trading.
According to Dr. Bhagwat Acharya, the Assistant Public Information Officer at the NRB, the Payment Systems Department initiated the probe after receiving information about the companies’ potential involvement in these illegal activities, which are considered unlawful in Nepal. As a result, the central bank has temporarily subjected both firms to regulatory compliance inspections.
In a strong regulatory action, the NRB has frozen the bank and financial institution accounts of Prabhu Money Transfer and Sajilo Pay Payment Services until further notice. “This is to inform all concerned parties that the accounts of the payment service providers Prabhu Nepal Pvt. Ltd., Anamnagar, Kathmandu, and Sajilo Pay Payment Services Pvt. Ltd., Baluwatar, Kathmandu, which have obtained licenses from this bank, have been frozen until further notice as their transactions are under regulatory compliance inspection,” stated the official notice issued by the central bank.
The investigation’s outcome could have severe consequences for the payment service providers. Acharya warned that if found guilty during the investigation, the licenses of these companies could be revoked, effectively barring them from operating in the Nepali market.
Furthermore, it is reported that the Central Investigation Bureau (CIB) of the Nepal Police is also conducting a parallel investigation into the alleged involvement of these payment service providers in illegal activities such as hundi, gold smuggling, and cryptocurrency trading, further underscoring the severity of the allegations.
As the investigation unfolds, it remains to be seen whether these Nepali payment firms will be able to clear their names or face severe consequences for their alleged involvement in unlawful financial activities.
Related:
