- The FIU highlighted the growing trend of criminals using crypto.
- Victims of crypto fraud often refrain from reporting the incident.
The Financial Intelligence Unit (FIU) of Nepal has discovered that, despite a government prohibition on trading digital assets, cryptocurrencies are extensively used to plan cyber-related scams.
Money laundering, terrorism funding, and other forms of financial crime are closely monitored and combated by the Financial Intelligence Unit (FIU). The FIU is a specialized section of Nepal Rastra Bank, the country’s central bank.
The Federal Investigation Unit (FIU) highlighted the growing trend of criminals using cryptocurrency. As a means of money laundering in its “Strategic Analysis Report” published on November 18th. According to the research, police have a hard time tracing and recovering stolen funds. Since criminals often change them into cryptocurrency. It is already difficult to catch fraudsters. And the ease with which they may move cryptocurrency to offshore accounts only makes things worse.
Major Suggestions by FIU
Also, scams involving cryptocurrency investments are becoming more common among Nepalese nationals. Scammers often use internet ads and social media to reach out to people, promising them huge profits when they don’t even exist.
Victims of crypto fraud often refrain from reporting the incident due to the stigmatization of crypto trade. Therefore, underreporting is still an issue due to reasons like shame or fear of consequences. Up to May 2024, around 64% of the fraud reported to Nepalese authorities included some kind of cyber-enablement.
Two major suggestions were made by the FIU in response to the increasing cyber threats: first, that financial institutions be trained to recognize warning signs and report them promptly; and second, that crypto transactions be subject to stricter examination.
Additionally, the authority suggested that legislative frameworks be updated to deal with digital payment fraud, that inter-agency collaboration be strengthened, and that public awareness be raised to lessen vulnerability to fraud.
Highlighted Crypto News Today:
