Financial Crime World

Afghanistan’s Financial Watchdog Takes Center Stage in Fight Against Money Laundering and Terrorism Financing

Introduction

Kabul, Afghanistan - The Financial Transactions and Reports Analysis Center of Afghanistan (FinTRACA), the country’s premier financial intelligence unit, has been at the forefront of combating money laundering and terrorism financing since its establishment in 2006.

Mission and Mandate

Under the Anti-Money Laundering and Proceeds of Crime Law (AML-PC law), FinTRACA operates independently, receiving, analyzing, and disseminating information related to money laundering and terrorism financing. The unit’s mission is clear: to deny the use of Afghanistan’s financial institutions by those who have obtained funds through illegal means or would use them to support terrorist activities.

Duties and Responsibilities

As the financial intelligence unit, FinTRACA’s duties are multifaceted:

  • Receives and analyzes reports from financial and non-financial entities that are legally obligated to submit suspicious transaction reports.
  • Collects and analyzes information from various sources, including cash transactions above a threshold amount specified by regulatory frameworks.
  • Detects suspicion of illegal use of the financial system and provides detailed analysis to law enforcement agencies and/or the Attorney General’s Office to support their investigations.

International Cooperation

FinTRACA engages in international cooperation with foreign Financial Intelligence Units (FIUs) to exchange financial intelligence information, governed by mutual legal agreements signed with counterpart FIUs. The unit utilizes the Egmont Group’s Secure Web platform for exchanging information with other FIUs.

Organization and Structure

Led by a Director General, two Deputy Director Generals, and six Section Directors, FinTRACA has a total of 68 personnel working together to achieve its objectives. The unit’s section directorates include:

  • Analysis
  • Compliance
  • Regional Operations and Non-Banking Financial Institutions
  • International Cooperation
  • National Cooperation and Coordination
  • Information Technology

Conclusion

As Afghanistan continues to navigate the complex landscape of financial regulation and enforcement, FinTRACA remains a vital component in the country’s efforts to combat money laundering and terrorism financing. Its commitment to protecting national security and upholding international obligations is unwavering, ensuring a safer and more stable financial environment for all Afghans.