Financial Crime World

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Compliance and Regulatory Issues in Afghanistan’s Finance Sector Pose Significant Challenges

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In a region plagued by instability and corruption, ensuring regulatory compliance has become a top priority for financial institutions in Afghanistan. FMFB-A, a leading bank in the country, has made it clear that adhering to the highest standards of regulatory and internal guidelines is one of its key objectives.

The Importance of Compliance

FMFB-A’s commitment to strict compliance allows it to detect and prevent violations of laws, regulations, and internal policies, thereby protecting shareholders’, employees’, and customers’ integrity. By doing so, FMFB-A earns trust and credibility, avoids unnecessary regulatory penalties, and treats customers fairly.

Compliance Department

At the heart of FMFB-A’s compliance efforts is its dedicated department, which oversees all aspects of compliance and manages risks faced by the bank. The department closely monitors the implementation of:

  • Know-Your-Customer (KYC)
  • Anti-Money Laundering (AML)
  • Combating Terrorist Financing (CTF)
  • Suspicious transactions reporting guidelines

Systems in Place

To better comply with AML/CTF laws, regulations, and international standards, FMFB-A has implemented several systems:

  • Oracle FCCM solution for AML/CTF and KYC: a profiling and transaction monitoring tool that automatically assesses customers’ risk and alerts predefined risk-based scenarios.
  • Acuity: a compliance sanction screening software that includes built-in AML-compliance software called Online Compliance. This system screens transactions against public sanctions (UN, OFAC, and European black lists), ensuring that each customer and every fund transaction is automatically screened against the public sanctions.

Maintaining Regulatory Compliance

These cutting-edge systems have enabled FMFB-A to maintain a strong reputation for regulatory compliance in Afghanistan’s finance sector, despite the numerous challenges posed by the country’s unstable environment. As the bank continues to grow and expand its operations, its commitment to strict compliance will remain unwavering, ensuring that it remains a trusted and respected financial institution in the region.