Here is the article in markdown format:

Fit and Proper Requirements for Board Members and Management

In Afghanistan, the banking law requires that board members and management of financial institutions must possess certain qualities to be considered “fit and proper”. According to Article [X] of the Banking Law, no individual or legal entity shall be deemed fit and proper if they have been convicted of imprisonment by a competent court for an offense other than political or religious views, declared bankrupt, disqualified or suspended by a competent authority.

Additionally, associates, beneficial owners, or representatives of individuals or entities that are not deemed fit and proper are also excluded from holding positions in financial institutions. This provision aims to ensure the integrity and transparency of the financial sector in Afghanistan.

Money Service Providers and Foreign Exchange Dealers Regulation

The Financial Action Task Force (FATF) recommends that jurisdictions regulate and supervise money service providers (MSPs) and foreign exchange dealers (FXDs) to prevent money laundering and terrorist financing. In Afghanistan, MSPs and FXDs provide a range of financial services, including foreign exchange, check cashing, money transfer, and issuing money orders or traveler’s checks.

The Money Service Providers and Foreign Exchange Dealers Regulation was amended and passed by the Supreme Council of Da Afghanistan Bank (DAB) in [Year]. The regulation requires MSPs and FXDs to register with the relevant authorities, maintain records of transactions, and report suspicious activities.

Electronic Money Institution’s Regulation

The Electronic Money Institution’s Regulation was also passed by the DAB in [Year]. The regulation sets out the requirements for electronic money institutions (EMIs) to operate in Afghanistan, including the need to obtain a license from the DAB and maintain minimum capital requirements.

Counter Financing of Terrorism Law

In addition to these regulations, the Counter Financing of Terrorism Law was passed by the Afghan government in [Year]. The law prohibits the provision of financial services that could facilitate terrorist activities and imposes sanctions on individuals or entities involved in terrorist financing.

Cash and BNI Control Regulation

The Cash and BNI Control Regulation was also introduced to prevent money laundering and terrorist financing. The regulation requires banks and other financial institutions to report large cash transactions and maintain records of customer accounts.

Fit and Proper Regulation for Banking Law of Afghanistan

The Fit and Proper Regulation was passed by the DAB in [Year] to ensure that individuals holding positions in banking institutions are fit and proper to do so. The regulation sets out the requirements for board members, management, and employees of banking institutions.

AML/CFT Responsibilities and Preventative Measures Regulation

The AML/CFT Responsibilities and Preventative Measures Regulation was introduced by the DAB in [Year] to ensure that financial institutions comply with anti-money laundering (AML) and combating the financing of terrorism (CFT) requirements. The regulation sets out the responsibilities of financial institutions in this regard and requires them to implement preventative measures to prevent AML/CFT.

Standing Freezing Order

The Standing Freezing Order was issued by the Afghan government in [Year] to freeze the assets of individuals or entities involved in terrorist financing. The order aims to prevent the use of Afghanistan’s financial system for terrorist activities.

Global AML/CFT Compliance: On-going Process - 23 June 2017

According to a report published by the FATF, Afghanistan has made progress in improving its global AML/CFT compliance. However, there are still areas that require improvement, including the need for more effective regulation and supervision of financial institutions.

Regulation Governing the Reporting and Control of Physical Transfers of Currency

The Regulation Governing the Reporting and Control of Physical Transfers of Currency was introduced by FinTRACA in [Year] to prevent money laundering and terrorist financing through physical cash transactions. The regulation requires banks and other financial institutions to report large cash transactions and maintain records of customer accounts.

Conclusion

In conclusion, Afghanistan has taken significant steps to improve its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime. However, there is still more work to be done to ensure that the country’s financial system is not used for illegal activities.