Revamped Law Enforcement Efforts Fall Short in Afghanistan

Struggling to Curb Crime Despite Efforts

Despite significant efforts to revamp law enforcement agencies in Afghanistan, the country continues to struggle with curbing crime, including money laundering and terrorist financing. According to a recent assessment, specialized agencies established to combat financial crimes lack adequate resources, expertise, and coordination.

Investigations Without Prosecutions or Convictions

Investigations into suspected cases of money laundering and terrorist financing have been led, but none has resulted in prosecutions or convictions. The report highlights the lack of clarity on the level of evidence required to initiate investigations and secure convictions for these crimes.

Coordination Challenges and Duplication of Efforts

Poor coordination between law enforcement agencies leads to duplication of efforts and squandering of scarce resources. This is further exacerbated by the porous borders and limited resources, which hinder effective action against financial crimes.

Building Capacity and Limited Resources

The Afghan government and foreign donors have made efforts to build the capacity of law enforcement agencies, but the country’s porous borders and limited resources continue to hinder effective action against financial crimes.

Declaration System and Airport Challenges

The report also criticizes the implementation of a declaration system for cross-border transportation of currency and bearer instruments, which is only partially implemented at Kabul International Airport. The proliferation of government agencies at the airport has further hampered efforts to prevent financial crimes.

Strengthening AML/CTF Measures

Financial institutions in Afghanistan have been granted AML/CTF preventive measures, but these need to be strengthened to improve compliance with international standards. Customer due diligence requirements are weak, and there is a lack of regulations on correspondent relationships and wire transfers.

Limited Reporting and Internal Policies

The report also highlights the limited reporting of suspicious transactions by financial institutions and the need for improved internal policies and procedures to prevent money laundering and terrorist financing.

Market Entry Conditions and AML/CTF Supervision

Market entry conditions and AML/CTF supervision in Afghanistan fall short of international standards, with a general lack of resources and expertise, as well as vested interests and corruption hindering effective implementation.

Unregulated Money Service Providers

The report concludes that while efforts have been made to bring money service providers under government monitoring, many continue to operate outside the legal framework, particularly in provinces such as Kandahar, Helmand, and Herat.

Way Forward

The Afghan government has acknowledged the challenges faced by law enforcement agencies and is working to address these issues. However, more needs to be done to strengthen institutions and improve coordination to effectively combat financial crimes and bring perpetrators to justice.