Paywell and Sajilo Pay facilitated gold smuggling payment: CIB

Kathmandu, July 2: The involvement of digital payment gateways -- Paywell Nepal and Sajilo Pay -- in the payment process of illegal gold smuggling has been uncovered. 

On Monday, the Central Investigation Bureau (CIB) of the police revealed in a press conference that these two service providers facilitated digital payments for the illegal gold trade.

From April 26, 2023, to May 3, 2024, electronic money equivalent to Rs. 86.17 billion was credited to Paywell’s wallet, according to the CIB. Of the amount, the highest amount, Rs. 61.50 billion, was credited through voucher deposits.

Similarly, from May 16, 2022, to June 3, 2024, electronic money equivalent to Rs. 36.94 billion was loaded into Sajilo Pay’s wallet, with the highest amount of Rs. 19.46 billion credited through voucher upload, according to Superintendent of Police and Spokesperson for the CIB Hobindra Bogati. 

The CIB’s investigation revealed that the money received from illegal gold trade and undisclosed sources was deposited, transferred, paid, with clearance in Paywell and Sajilo Pay’s accounts.The CIB also claimed that throughout the investigation period, the Bureau had recovered the details of Rs. 1 billion through vouchers. 

All these transactions were conducted in cash through agents without the approval of the Nepal Rastra Bank, said the CIB.

When making payments, incorrect data was submitted to the Payment Systems Department of the central bank on a daily and monthly basis, as stated by the CIB during the press conference. 

Since their establishment, transactions worth Rs. 123 billion have been conducted through these gateways, with Rs. 96 billion transacted through voucher deposits.

The CIB also revealed that money sent as remittance from countries such as Australia, UAE, and South Korea was transferred elsewhere from abroad and the money obtained from the illegal gold trade was deposited in various bank accounts of those receiving remittances in Nepal. 

Eight persons, including board members, employees, and agents involved in the case, have been arrested, said SP Bogati. Among the arrested include -- Paywell’s Chairman Bhim Prasad Timilsina, Deputy Chief Executive Officer Prajwal Acharya, and Chief Accountant Suraj Shumsher JB Rana. 

Similarly, Sajilo Pay’s board members 

Phunsuk Dagpa Athupchhang Khampa and Sushil Jakibancha, and Chief Executive Officer Kashyap Manandhar have been arrested, along with agents Lal Bahadur Kunwar and Arun Kumar Yadav.

After finding involvement in illegal transactions such as hundi (informal money transfer) and smuggling, the Nepal Rastra Bank has blocked the bank accounts of payment service providers ‘Paywell Nepal Pvt. Ltd.’ and ‘Sajilo Payment Services Pvt. Ltd.’ 

On May 31, the central bank issued a notice to suspend all bank accounts of these companies, said the CIB.

According to the Bureau, it has submitted the investigation report to the District Attorney Office on Friday (June 28) completing the investigation filing charge sheet against 20 arrested individuals and 24 others still absconding, including foreign nationals from China and India.   

Police have filed charge sheets against them under Customs Act-2007, Organised Crime-2013, Civil Criminal Code Act-2017, Citizenship Act-1963, Passport Act-1967 and Nepal Rastra Bank Act-2001. 

According to SP Bogati, the Bureau has sought recovery claim amount of Rs. 266.67 billion from the accused defendants.