Financial Crime World

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Curbing Illicit Financial Flows in Afghanistan

Headline

Afghan Authorities Urged to Enhance Transparency and Crack Down on Illicit Financial Flows

Date

Kabul, Afghanistan - August 31, 2015

In an effort to combat corruption and money laundering in Afghanistan, Integrity Watch Afghanistan is calling on the government to increase transparency and take decisive action against illicit financial flows.

Recommendations

  • Enhance transparency of beneficial ownership and control structures of legal persons and organizations
  • Prioritize strong national coordination and cooperation among relevant ministries, agencies, and authorities
  • Resume collaboration with the international community, providing support and technical assistance to the Da Afghanistan Bank (DAB)
  • Strengthen FinTRACA and other relevant institutions

“Corruption and money laundering are two sides of the same coin,” said Tim Gray, author of the policy brief. “To combat these issues effectively, we need a coordinated effort from all stakeholders, including the government, financial institutions, and civil society organizations.”

Implementation

  • Implement a more proactive tax examination regime
  • Establish a high-level task force between the Ministry of Finance and the Attorney General’s Office to examine, audit, and take punitive measures against companies or organizations found to be evading taxes

Registering Money Service Providers

Integrity Watch Afghanistan is urging the government to register and license all Money Service Providers (MSPs) and establish appropriate regulations for this sector under the supervision of DAB.

Research Paper

The policy brief draws upon a forthcoming research paper by Integrity Watch Afghanistan, titled “Curbing Illicit Financial Flows in Afghanistan: Money Laundering, Terrorist Financing and Hawala”, which provides an in-depth analysis of the issues and proposes practical solutions to address them.

Contacts

  • Integrity Watch Afghanistan
  • Authors:
    • Tim Gray
    • Ezatullah Adib