China and Iran are deceiving US sanctions with the help of Nepal. According to an investigation by the Center for Investigative Journalism (CIJ), some banks and companies in Nepal are allegedly involved in transferring money that is obtained suspiciously from overseas.
The report released on Sunday, 20th September 2020 shows the involvement of Nepali companies and banks. They have been attempting to deceive US sanctions on trade especially on Iran and China.
What does the Investigative reports reveal?
The 25-page report states that some Nepali business entities links to the international smuggling of gold, antiquities, bitumen, and telecommunication equipment.
Some of the banks in the list are Standard Charter Bank, Prime Commercial Bank, Bank of Kathmandu, Nepal Investment Bank. Also, Everest Bank, Mega Bank, Himalayan Bank, Apex Development Bank of Kaski, and Nepal Bangladesh Bank.
As per the report, a suspicious amount of transactions of 292.7 million dollars also done through these banks and companies for 11 years was done.
The report has also named SubhaSamriddhi Traders Pvt. Ltd., Shasta Trading Company, Setidevi Export Import Pvt. Ltd., Acme Money Transfer Service, L.D. International Pvt. Ltd., Rauniyar Brothers, , Felt and Yarn Pvt. Ltd., Woman’s Paper Crafts, and Sunny Enterprises as the companies allegedly involved in suspicious cross-border transactions.
Shubha Shambridhi Traders, Rauniyar Brothers, based in Parsa District of Nepal have allegedly conducted suspicious transactions via a Dubai based company called Kite International FZE. The company’s main business is to import and export petroleum products.
Narayanji Rauniyar, one of the directors of two companies, who had links with Kite. He said that there is no company now. The companies closed four to five years ago and that they used to import bitumen, but they don’t anymore. Both the companies are registered with the name of Narayan Ji Rauniyar of Birgunj and his four sons.
Bonding between a Nepali Bank and ZTE
Zhongxing Telecommunication Equipment (ZTE) Corporation, China’s largest telecommunications service provider company, remitted 213.3 million dollars to other countries. This included Nepal, from 17th March 2011, to 1st March 2017.
ZTE had done the transaction via Beijing-based China Construction Bank. The New York branch of China Construction Bank had discovered that the transacted amount was suspicious.
ZTE Corporation also deposited four separate amounts that are 5,709.09 dollars, 5,244.76 dollars, 40,357.75 dollars , and 10 dollars in Nepal Investment Bank, Kathmandu.
The company apparently makes the purchase of telecommunications equipment from the United States. It then sells it illegally to Iran as ZTE’s equipment.
