The Thimphu District Court has convicted 16 individuals for operating mule accounts. A mule account is a bank account belonging to a legitimate person that another person uses to collect or transfer funds. Such practice often involves foreign entities engaged in business transactions. The Royal Monetary Authority (RMA) registered the case with the district court in September last year.
Initially, the RMA filed cases against 20 individuals in connection with the incidents. However, the court acquitted four individuals.
The remaining 16 were sentenced to 50 days of imprisonment with an option to pay an equivalent monetary penalty.
More than Nu 3.6 M were seized, with amounts ranging from Nu 2,000 to more than Nu 1 M from each individual.
Among the 20 accounts, three were CD accounts, while the rest were personal accounts. The accounts were registered with three different banks.
The account holders included private individuals, civil servants, and business operators.
The Central Bank said there is a need for stricter enforcement and increased awareness to deter future offences.
They stated that it is essential to revise the regulatory framework to clearly define and prohibit the operation of mule accounts.
In response to the growing threat of financial crimes, the RMA said relevant agencies are working to curb them.
Meanwhile, the RMA said it is investigating similar cases.
Deki Lhazom
Edited by Tshering Zam
