Jewelry stores used digital wallets to pay gold smugglers: Police

Published On: July 2, 2024 09:40 AM NPT By: Republica | @RepublicaNepal

KATHMANDU, July 2: The Central Investigation Bureau (CIB) of Nepal Police has completed the second phase of investigation into the 61 kg gold smuggling case. The CIB submitted its report to the District Attorney's Office in Kathmandu regarding the gold concealed in brake shoes that passed the customs clearance of the Tribhuvan International Airport (TIA) last year but was apprehended outside the airport on a tip-off.

The second phase of investigation revealed that gold was smuggled not only in brake shoes but also in other items. The investigation showed that gold was hidden in water heating pumps, digital watches, and other goods. The involvement of additional parties was uncovered during the investigation of five companies involved in smuggling gold in this manner. In the second phase, the CIB arrested and investigated 20 individuals, including Indian and Chinese nationals.

The CIB has claimed compensation amounting to Rs 266.68 billion from those allegedly involved in the case.

Operators of jewelry stores have also been linked to the case. They were dragged into controversy for making payments to the alleged smugglers through mobile wallets.

According to the police, Easy Pay and Paywell wallets were used in facilitating payments for smuggled gold. These companies operated through agents without the approval of Nepal Rastra Bank. According to CIB, transactions totaling Rs 125 billion were processed through these wallets.

CIB noted that the wallets issued 'e-money' exceeding their limits and did so without adequate balances. Police have arrested the chairman and employees of these wallets. Investigations reveal that only Rs 4 billion was actually transacted by the two agents associated with the seized wallets.

The 61 kg gold smuggling case is just the tip of an iceberg. Police reported that 3,194 kilograms of gold were smuggled in one year. The investigation also revealed that a fake company was created to facilitate gold smuggling.