Afghanistan Lags Behind on Beneficial Ownership Disclosure Reforms

Kabul - Despite commitments to increase transparency, Afghanistan’s efforts to implement beneficial ownership disclosure reforms have been slow, according to recent data.

Commitments to Transparency

Afghanistan has made several commitments to beneficial ownership transparency since 2016, including at the UK Anti-Corruption Summit and as part of an Open Government Partnership National Action Plan. Additionally, as a member of the Extractives Industry Transparency Initiative (EITI), Afghanistan has committed to disclosing beneficial ownership information for the extractives sector.

Lack of Progress on Beneficial Ownership Disclosure Reforms

However, data from the Open Ownership map shows that Afghanistan has yet to establish a live register of beneficial ownership, which is a key indicator of transparency in this area. A live register is a publicly accessible database that provides information on who ultimately owns and controls companies and other legal entities.

Concerns about Corruption and Accountability

The lack of progress on beneficial ownership disclosure reforms in Afghanistan raises concerns about the country’s ability to tackle corruption and ensure accountability in its business sector. Beneficial ownership transparency is crucial for preventing money laundering, terrorist financing, and tax evasion, as well as promoting good governance and economic development.

Importance of Establishing a Live Register

Experts say that establishing a live register would be an important step forward for Afghanistan, allowing citizens and investors to access accurate information on company ownership and control. This, in turn, could help to build trust in the country’s business environment and promote transparency and accountability.

Efforts to Improve Beneficial Ownership Disclosure

While progress has been slow, there are signs of efforts to improve beneficial ownership disclosure in Afghanistan. The Ministry of Mines & Petroleum has established an EITI register, which provides some information on company ownership and control in the extractives sector. However, this register is not a live register, and its data is not publicly accessible.

Challenges in Implementing Beneficial Ownership Disclosure Reforms

The Afghan government faces significant challenges in implementing beneficial ownership disclosure reforms, including a weak institutional framework, limited resources, and insecurity in certain parts of the country. Nevertheless, experts say that establishing a live register should be a priority for the government, given its importance for promoting transparency and accountability in the business sector.

Conclusion

In conclusion, Afghanistan’s efforts to implement beneficial ownership disclosure reforms have been slow, despite commitments to increase transparency. The establishment of a live register would be an important step forward for the country, allowing citizens and investors to access accurate information on company ownership and control. While progress has been slow, there are signs of efforts to improve beneficial ownership disclosure in Afghanistan, and experts say that establishing a live register should be a priority for the government.