Diplomatic Missions Urge Nepali Expats: Stop Using Hundi for Remittance

Hundi Remittance Financial Crime

16th December 2025, Kathmandu

Nepali diplomatic missions abroad are issuing an urgent appeal to all non-resident Nepalis (NRNs). They strongly advise expats against sending money to Nepal through unauthorized, informal channels like Hundi Remittance Financial Crime Nepal.

Hundi Remittance Financial Crime

This is a serious issue that has caught the attention of governments.

Embassies in countries like South Korea and the United Arab Emirates (UAE) have released public notices. These notices strictly request Nepali nationals to stop using Hundi for remittance. These informal systems are illegal. They pose significant risks to individuals and the nation’s economy.

Embassies Take Action Against Illegal Transfers

The diplomatic missions are actively requesting cooperation to discourage and curb Hundi transactions. They urge community members to come forward. If anyone has evidence of such illegal dealings, they should report it to the embassy immediately.

The Nepalese Embassy in South Korea confirmed it routinely gathers and forwards such information. It is mandated to send monthly updates and data on Hundi activities to the Ministry of Foreign Affairs. Similarly, the Nepali Embassy in the UAE is also actively discouraging Hundi. It is regularly sending details of individuals involved in Hundi transfers back to the Nepal government.

The Connection to Financial Crime

Nepal has strict policy provisions to combat money laundering and the financing of terrorist activities. Under these rules, embassies must electronically transmit confidential information to the Ministry of Finance or other relevant bodies. This transmission is facilitated through the Ministry of Foreign Affairs.

The information covers instances where Nepalis abroad are involved in informal remittance transactions (Hundi) or fail to send collected funds back to Nepal officially. These transactions bypass the formal banking system. This makes them a major vulnerability for financial crime. The government is committed to eliminating these loopholes.

Remittance Growth Masking Illegal Flows

Nepal’s economy heavily relies on remittance inflows. The amount of money officially sent back by NRNs increases every year. For example, during the current fiscal year, from mid-July to mid-November, Nepal saw an inflow of NPR 687.13 billion in remittance.

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However, experts estimate that the number of people using Hundi to send money is also escalating. This parallel, illegal flow seriously undermines the economic data. It deprives the government of necessary tax revenues. It also weakens the financial sector’s stability.

⚖️ Why Formal Channels Are Essential

Using formal banking and remittance channels is crucial for several reasons:

• Security: Formal channels offer legal recourse and insurance for lost funds.

• Legality: They comply with national and international financial regulations.

• Economic Contribution: Funds sent via official means contribute positively to the national foreign exchange reserves and economic stability.

• Traceability: Formal systems ensure funds are traceable, which is vital in preventing money laundering and other financial crimes.

Your Role in Combating Hundi Remittance Financial Crime Nepal

The diplomatic missions are appealing directly to the patriotic spirit of NRNs. Every Nepali abroad must use formal, legal remittance channels to send their earnings home.

Do not facilitate or participate in Hundi. By using the official system, you protect yourself from potential fraud. More importantly, you strengthen Nepal’s economy and help combat serious cross-border financial crime. Support the official system; report the illegal one. Your responsible action is vital for the nation’s financial integrity.

For more: Hundi Remittance Financial Crime