Nepal Police files Rs 1 billion money-laundering case over illegal US migration racket; 250 victims linked to human trafficking network

KATHMANDU: Nepal’s law-enforcement agencies have filed a high-profile money-laundering and human trafficking case worth nearly Rs 1 billion against two suspects accused of operating an organised illegal migration racket that sent around 250 Nepalis to the United States through unlawful routes.

The case was registered at the Kathmandu District Court following a financial crime investigation led by the Human Trafficking Investigation Bureau, with prosecution initiated by the District Government Attorney’s Office.

Authorities say the case represents one of the largest recent crackdowns in Nepal on illegal migration networks, foreign employment fraud, student visa scams, organised human smuggling, and cross-border financial crime.

Illegal migration scheme targeting US entry

The accused are Kalbahadur Basnet of Rukum West and Amit Basnet of Rukum East. Investigators allege the duo built a network that promised entry to the United States through education pathways, employment arrangements, or alternative migration routes but instead trafficked individuals through illegal channels.

Police say about 250 Nepali citizens were transported abroad through irregular migration routes, while others were allegedly stranded after paying large sums for US visas, overseas jobs, or study placements.

Officials note that this pattern reflects a growing trend in Nepal’s migration landscape, where student visa fraud, asylum scams, fake recruitment agencies, and undocumented migration routes are increasingly used to exploit youths seeking opportunities abroad.

Kalbahadur Basnet is currently in judicial custody at Dillibazar prison. He was arrested in Dubai in Bhadra with assistance from INTERPOL and brought to Kathmandu to face charges of human trafficking, organised crime, and financial offences.

Co-accused Amit Basnet remains absconding and has been charged as a fugitive defendant.

Nearly Rs 1 billion in suspected illegal financial flows

Financial analysis of bank accounts linked to the suspects revealed massive suspicious transactions believed to be tied to migration fraud and trafficking payments.

According to investigators:

Kalbahadur Basnet’s accounts showed Rs 706,053,722 in questionable transactions

Amit Basnet’s accounts showed Rs 274,529,028 in suspicious deposits and transfers

Combined, authorities identified Rs 980,582,751 in alleged illegal financial activity and have demanded confiscation of assets equal to that amount under Nepal’s anti-money-laundering laws.

Police say the movement of funds suggests the presence of an organised transnational financial network involving recruiters, intermediaries, travel facilitators, and possible foreign collaborators.

Experts note that such cases increasingly involve digital payments, informal remittance channels, banking networks, shell accounts, and cross-border transaction layering, making financial tracking more complex.

Nepal tightening crackdown on trafficking and migration fraud

Security officials say the case underscores Nepal’s escalating battle against human trafficking, foreign employment scams, education consultancy fraud, and illegal migration routes to the US, Europe, and Canada.

Authorities have repeatedly warned that:

Economic slowdown and unemployment are pushing youths toward risky migration options

Demand for foreign education and overseas jobs is rising sharply

Criminal groups are exploiting visa demand, English-test requirements, and student mobility pathways

Investigators say Nepal is now placing stronger emphasis on financial surveillance, asset seizure, anti-money-laundering enforcement, and cross-border intelligence cooperation to dismantle such networks.

The prosecution is expected to continue as authorities attempt to arrest the fugitive suspect and identify possible wider connections to international smuggling rings.