Nepal Rastra Bank Governor Warns Financial Crimes Severely Impacting Developing Nations

Kathmandu. Nepal Rastra Bank Governor Dr. Bishwa Nath Paudel stated that financial crimes and money laundering have severely impacted the banking systems and social structures of developing nations. Addressing a program on money laundering in Kathmandu on Wednesday, he mentioned that financial crimes and money laundering, which cause an estimated global annual revenue loss of $3.6 billion, have seriously affected the banking systems and social structures of developing countries.

According to the Governor, the human cost of financial crime is even more devastating than its economic impact. It not only deepens the socio-economic gap but also increases the risk of exploiting youth and children in criminal networks. He argued that making the younger generation, who should be engaged in innovation and creativity, a medium for crime is the most dangerous consequence. He stated that borderless financial crimes rapidly transfer funds by exploiting legal loopholes and technological weaknesses. To stop this, he emphasized the need for preventive supervision rather than reactive measures, and the implementation of a risk-based supervision system that does not affect financial inclusion.

Governor Paudel pointed out the necessity for all regulatory bodies in sectors such as banking, insurance, securities, and cooperatives to function as a collective defense line. He stressed the need to build a system capable of facing tomorrow's uncertainties, not just mitigating today's risks.