AFGHANISTAN TO IMPLEMENT BENEFICIAL OWNERSHIP DISCLOSURE RULES IN LINE WITH GLOBAL STANDARDS

Transparency and Anti-Money Laundering Efforts

In a significant move towards enhancing transparency and preventing money laundering, the Afghan government has announced plans to implement beneficial ownership disclosure rules in line with international standards.

Global Best Practices

According to a report by the Law Library of Congress, many countries around the world have recently amended their laws to require companies to disclose information on their beneficial owners. Even among G-7 countries, Canada and Japan are the only two jurisdictions that did not change their national laws to meet Financial Action Taskforce (FATF) requirements.

Afghanistan’s Move Towards Transparency

Afghanistan is one of several countries that has been working on amending its laws to address beneficial ownership issues. The country’s current laws do not contain transparency or beneficial ownership provisions, but a new rule is expected to be introduced in the near future.

Proposed Rule

Under the proposed rule:

• Companies will be required to report information on their beneficial owners to the registering authorities.
• Information on corporate registration and beneficial ownership will be made available to the public through an online database.
• Companies will be required to provide correct information on their beneficial owners and update it regularly.
• Failure to disclose beneficial owners may result in fines, de-registration, or imprisonment.

International Standards and Best Practices

The report notes that access to corporate data reported in registration documents is determined differently in each country. Some jurisdictions have created open access to public registers of beneficial ownership, while others limit access to law enforcers or monitoring government authorities.

Conclusion

The introduction of beneficial ownership disclosure rules in Afghanistan is a significant step towards enhancing transparency and preventing money laundering. The country’s move follows international best practices and demonstrates its commitment to combating financial crimes.