Afghanistan’s Strict AML Regulations: What You Need to Know

Overview

In an effort to combat money laundering and terrorist financing, the Afghan government has implemented stringent anti-money laundering (AML) regulations that require businesses operating in the country to adhere to strict guidelines.

Identity Verification Requirements

• Individuals and organizations must undergo rigorous identity verification processes to ensure they are not involved in illegal activities.
• The following documents are considered as proof of identity:
  • National ID card
  • Driving license
  • Passport

Address Verification Requirements

• Businesses must verify an individual’s address by requesting the following documents:
  • Current utility bill (electricity, gas, telephone or mobile phone)
  • Bank statement (issued within the last three months)
  • Document issued by a government department that shows the individual’s address and name

Ongoing Identity Verification

• Identity verification is not a one-time process in Afghanistan. It is required in multiple instances as per regulations.
• Businesses must verify an individual’s identity at various stages of their relationship with the company, including:
  • Onboarding new customers
  • Conducting transactions
  • Identifying high-risk individuals or situations

Additional Requirements

• Businesses are required to identify Politically Exposed Persons (PEPs) and implement Enhanced Due Diligence (EDD) measures to mitigate risks associated with money laundering and terrorist financing.
• Shufti Pro offers a range of AML screening services that can screen an individual’s ID attributes against global regulatory authorities’ watchlists, foreign and domestic databases, compromised PEPs, and sanctioned individuals.

Compliance Obligations

• Businesses must collect all relevant data from third-party providers without undue delay.
• They must remain liable for maintaining compliance and fulfilling AML and KYC obligations.
• Data retention is a crucial aspect of AML and KYC obligations. Businesses are required to retain data for not less than five years.

Conclusion

Afghanistan’s AML regulations are designed to ensure that businesses operating in the country do not facilitate illegal activities. By understanding these regulations and implementing strict compliance measures, businesses can minimize the risk of money laundering and terrorist financing while maintaining a good reputation in the market.