Nepal Embassy in Seoul Issues Notice Against Informal Remittance (Hundi) Activities to Prevent Money Laundering and Terrorist Financing
17th December 2025, Kathmandu
The Embassy of Nepal in Seoul has issued a critical public notice directed at all Nepali nationals currently residing or working in South Korea. This official directive urges citizens to strictly refrain from participating in or facilitating informal remittance transactions, which are commonly known as Hundi. The release of this notice is a key part of the broader national strategy of Nepal to prevent money laundering and the illicit financing of terrorist activities. By addressing these unregulated financial flows, the government aims to protect the economic integrity and international standing of the country.
Notice Against Informal Remittance
The embassy has emphasized that using unregulated channels for sending money is not merely a violation of national law but a direct threat to the economic stability of Nepal. As the country strives to align its financial systems with global standards, the cooperation of migrant workers in South Korea is essential. The government is focused on ensuring that every rupee earned abroad contributes to the formal economy rather than disappearing into the shadow market.
Background and Purpose of the Notice
According to the official communication from the embassy, the Government of Nepal has established a rigorous and confidential mechanism for monitoring international financial movements. Under this framework, information regarding individuals or organized groups involved in Hundi operations must be collected and transmitted electronically. This includes those who collect funds abroad but fail to remit them through authorized banking channels. This data is transmitted through the Ministry of Foreign Affairs to the Ministry of Finance and other relevant law enforcement agencies in Nepal.
In compliance with these national provisions, the Nepal Embassy in Seoul has been actively and regularly submitting verified data on suspicious financial activities to the Ministry of Foreign Affairs in Kathmandu. These reports are compiled and submitted on a fixed schedule, ensuring that all data is transmitted no later than the 20th of every Nepali month. This consistent reporting reflects the absolute commitment of Nepal to financial transparency and its strict adherence to international regulatory compliance standards.
Strong Advisory to the Nepali Community in South Korea
The embassy has issued a clear and firm request to all Nepali individuals in South Korea to neither engage in nor encourage any form of informal remittance. Systems like Hundi are strictly illegal under the prevailing laws of Nepal and pose significant risks to the financial integrity of the nation. These unregulated systems bypass the formal banking infrastructure, making it difficult for the central bank to manage foreign exchange reserves effectively.
The notice specifically highlights that anyone operating or assisting in Hundi transactions is in direct violation of national and international financial regulations. Such activities are frequently linked to illicit financial flows that can unintentionally or intentionally support criminal activities. The embassy warned that these practices undermine the collective efforts of thousands of legitimate migrant workers whose formal contributions are a lifeline for the economy of Nepal. Anyone found facilitating these illegal transfers could face severe legal consequences both at home and abroad.
Call for Public Cooperation and Information Sharing
The embassy has made a direct appeal to the Nepali community in South Korea to act as responsible citizens by cooperating with the government. If any individual or group is found to be operating an informal money transfer business, the embassy requests that detailed information and supporting evidence be submitted confidentially to their office in Seoul. This proactive stance is intended to root out the networks that exploit migrant workers and bypass the law.
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The embassy has clarified that this information sharing mechanism is not intended to target law abiding migrant workers who use legitimate services. Instead, its primary goal is to identify and deter organized criminal elements that operate outside the formal banking system. The embassy has reassured the public that all information provided is handled with the highest level of confidentiality through official diplomatic and governmental channels. By reporting illegal activities, citizens help to safeguard the national security and economic prosperity of Nepal.
The Importance of Using Formal Remittance Channels
The notice from the embassy underscores why using formal banking and licensed remittance providers is essential for every worker. Official remittance systems ensure that the money sent home is protected by consumer rights and that the transactions are fully documented. These formal flows contribute directly to the foreign exchange reserves of Nepal, which are vital for national development and the payment of international obligations.
By contrast, informal systems like Hundi present several grave dangers. They can easily facilitate money laundering and enable the flow of illicit funds across borders without detection. Hundi operations also evade taxation and regulatory oversight, which deprives the state of the resources needed for public services. Furthermore, both the sender and the recipient in a Hundi transaction are exposed to significant legal risks and potential prosecution under anti money laundering laws. Nepali workers in South Korea are therefore strongly encouraged to use only authorized banks and digital platforms that have been approved by the Nepal Rastra Bank and South Korean financial authorities.
The Monitoring Role of the Embassy and Contact Information
The Nepal Embassy in Seoul reaffirmed its proactive role in monitoring and reporting illegal financial activities as per government directives. This work is fully aligned with the commitments Nepal has made under international financial compliance frameworks, such as those established by the Financial Action Task Force. The notice was officially dated and issued on 2082 09 01 in the Bikram Sambat calendar.
For any information or reporting or official communication, the embassy has provided several contact points. Citizens can reach the office via telephone at plus 82 2 3789 9770 or 9771. The official website is available at the address of www dot kr dot nepalembassy dot gov dot np. Additionally, emails can be sent to conseoul at mofa dot gov dot np or to the other official accounts mentioned in the notice. The physical address of the embassy is 19 2 gil Seonjam ro Seongbuk gu Seoul 02823 Republic of Korea.
Through this notice, the Nepal Embassy in Seoul has highlighted the legal and economic risks associated with Hundi. It calls upon all Nepali citizens in South Korea to support the country by using formal channels and reporting any illegal financial operations. This collective effort is necessary to maintain a clean and transparent financial system for the future of Nepal.
For More: Notice Against Informal Remittance
