Afghanistan

New Documents

The U.S. Inspector General released a report that concluded that though Afghanistan is in the process of implementing anti-corruption reforms, various problems still need to be addressed and “questions” about the government’s lasting commitment to anti-corruption reforms remain.

The Royal United Services Institute published an occasional paper detailing illicit financial flows and corruption in Asia across eight countries: Kyrgyzstan; Tajikistan; Afghanistan; Pakistan; India; Nepal; Bangladesh; and Myanmar.

Enforcement Actions

0 Items Found


Important Facts

  • The U.S. State Department identifies Afghanistan as a major money laundering jurisdiction. Narcotics trade, corruption, illegal mineral extraction, and fraud are the major sources of illicit revenue in the country. Afghanistan is the world’s largest opium producer and exporter. Terrorist and insurgent financing, inaccurate customs' revenue collection, money laundering, bulk cash smuggling, and the abuse of hawalas and other informal value transfer systems are common. In addition, the country's borders with Pakistan and Iran are porous, making it easy for smugglers. Precious metals and stones dealers, lawyers, accountants, and real estate agents are not properly supervised for anti-money laundering compliance, and holes remain regarding Afghanistan's effort to combat money laundering through prosecutions and asset seizures. In addition, a lack of investigative and prosecutorial capacity negatively impact the supervision of banks, money services business and money exchanges. Afghanistan has know-your-customer and suspicious transaction reporting regulations that require financial institutions to determine and monitor the risk levels of customers and accounts.
-Source: 2020 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 1 High :
Largely Compliant : 1 Substantial :
Partially Compliant : 17 Moderate :
Non-Compliant : 29 Low :
Not-Applicable : 1

BASEL i

Rank : 1/141
Score : 8.16/10

TRANSPARENCY INTERNATIONAL i

Rank : 173/180
Score : 16/100

Tax Justice Network i

Rank : N/A
Score : N/A