Nepalese Embassy Urges Against Sending Money to Nepal via Hundi and Informal Channels from Overseas Employment
The Nepalese Embassy in Tel Aviv has renewed its appeal on Wednesday for Nepalese workers in Israel and Cyprus not to send remittances through hundi, an illegal informal hawala system, bringing the illicit practice back into focus. Despite being unlawful, many Nepalese laborers abroad continue to remit money to Nepal using hundi.
Om Kumar Bhandari, Acting Nepalese Ambassador to Israel, explained that those who send money through hundi may encounter difficulties, which is why the embassy has reiterated its cautionary advice. He noted that unauthorized Nepalese workers, especially those residing illegally, might still rely on hundi channels to transfer money.
Some Nepalese workers based in Israel have observed that sending remittances through formal channels has now become more convenient, which should reduce reliance on hundi. An economist has emphasized the need for stricter monitoring by Nepal Rastra Bank over funds entering Nepal through hundi routes.
The embassy issued a notice on Wednesday warning about transactions via informal methods and pointed out that embassy officials have repeatedly cautioned the community regarding such practices in the past.
The notice stated, “Point 45 of the 100-point governance reform agenda approved by the Nepalese Cabinet on Chaitra 13, 2082 BS, includes the establishment of an ‘Integrated Digital Asset Registry’, the implementation of a risk-based signaling system, and the identification of suspicious transactions to be investigated through relevant authorities.”
According to Acting Ambassador Bhandari, approximately 6,500 Nepalese are officially registered in Israel. “It is estimated that about 2,000 Nepalese reside illegally without registration,” he said. “Those individuals may be using hundi or other informal channels to send money, but there is a lack of concrete evidence about such informal transactions, making the issue challenging to address,” Bhandari added.
