The Royal Monetary Authority of Bhutan through our surveillance has recently observed cases of `Mule Account and `Money Mule` in operations in the financial sector. A `Mule Account` is a bank account belonging to a legitimate person who has allowed another person to use/operate the banking transactions. The process of allowing a bank account to be used by another person turns the legitimate bank account into a `Mule Account`. A `Money Mule` is a person who is recruited by another person to transfer or illegally transfer money on another person’s behalf, either for a fee/commission in return. A `Money Mule` is not aware of either the source of funds or the use of funds, for which they could be liable for prosecution in the court of law as a part of a fraud or money laundering activities carried out in violation of the law in vogue.

The Royal Monetary Authority would like to issue the following cautionary note to the general public:

  1. A person who has opened a bank account but is operated/used by another person is solicited to close such accounts by 31st December 2021;
  2. Failure to close such bank accounts after the aforesaid deadline shall lead to suspending the bank account and freezing of funds without further consideration;
  3. The mule accounts shall be forwarded to the relevant law enforcement agencies for further probe and initiating appropriate legal actions in accordance with the relevant laws of the country.

The RMA would like to solicit kind cooperation and assistance from the general public.