South Korean authorities arrested a Nepalese national this week on charge of operating Hundi, an illegal form of remittance in which the transferred funds are not reported.
The man and his accomplice allegedly received money from Nepalese workers in South Korea and would send it to their families back home. A “gang” in Nepal would receive the funds from “Chinese middlemen”, a South Korean media report indicated.
The unidentified Nepalese man is one of ten foreigners caught last Tuesday for the transfer of some 50 billion won (US $44.4 million) from Korea to Nepal. Citing Gyeonggi Nambu Police Agency, Korea Times reported that police arrested the men on suspicion of violating Korea’s Foreign Exchange Transaction Act by illegally sending money for some 3500 Nepalese workers employed in the country.
The name of the 36 year old Nepalese man has not been disclosed.
Police said the arrested Nepalese man and a Chinese student used the money collected from the Nepalese workers to buy Korean beauty products and then illegally export them to China through Chinese middlemen. The Chinese middlemen would send the Nepalese workers’ money to a gang in Nepal that in turn would distribute the money to the workers’ families.
The offences allegedly occurred from August 2011 to August 2016.
Rest of the eight foreigners were booked without arrest for allegedly receiving similar requests from Nepalese migrant workers in Korea and passing the requests to the Chinese student, Korea Times further said.