DRI to probe activities of money exchange outlets

KATHMANDU, JAN 10: 

The Department of Revenue Investigation (DRI) will tighten its noose around money exchange outlets suspected of being involved in foreign currency misappropriation which has been encouraging the informal economy.

There are at least two tangible reasons to suspect that there is something wrong being done by money exchange outlets, said deputy director general at the department Damodar Regmi. “Both tourist inflow and foreign employment have increased but cash transactions from both sectors have been stagnant.”

DRI will thoroughly investigate the issue since the trend has left enough room to suspect that the volume of the informal economy has widened significantly, he added. 

Money exchange outlets must make all their transactions through the formal banking channel, Regmi informed. “However, the data of income from tourist inflow into the country and foreign employment has made DRI suspicious of all concerned areas including money exchange outlets.”

Another area of suspicion is the involvement of money exchange outlets in Hundi, an informal and illegal underground banking channel, he claimed. “Hundi contributes 

to the expansion of the informal economy which is dangerous to the financial health of the country.”

The Finance Ministry recently directed the department to enhance its vigil on money exchange outlets. “DRI will initiate investigations with assistance from Nepal Rastra Bank (NRB),” said joint secretary at the ministry Rajan Khanal.

DRI will collect the list of money exchange outlets approved by NRB and monitor their activities, he said. 

The Finance Ministry will work with the central bank to identify the other loopholes 

of formal money exchange outlets and other possible areas of informal economy, according to Khanal. 

“The department will also investigate whether money exchange outlets are involved in exchanging currencies of countries which are not approved by the central bank for money exchange outlets to be involved in,” said Regmi. 

The central bank allows the exchange of 15 currencies — US dollar, euro, pound sterling, Swiss franc, Australian dollar, Canadian dollar, Singapore dollar, Japanese yen, Chinese renminbi (yuan), Saudi Arabian riyal, Qatari riyal, Thai baht, UAE dirham, Malaysian ringgit and South Korean won. Similarly, it allows only buying of Swedish kroner, Danish kroner and Hong Kong dollar from money exchanges and commercial banks. 

The Department of Revenue Investigation had raided the Thamel-based North Point money exchange outlet suspecting the exchange of having committed fraud last year but did not reveal the details of the investigation.

Source: THT