Financial Crime World

ISTA Bank Removes Disqualified Board Members

Kabul, Afghanistan - The Islamic State of Afghanistan (ISTA) has taken a significant step towards strengthening its financial sector by removing all members of the board of supervisors and management board, or equivalent governing bodies, who have been convicted of criminal offenses or declared unfit to serve.

Background

In recent years, ISTA has made significant progress in implementing anti-money laundering (AML) and combating the financing of terrorism (CFT) measures in line with international standards. The country has established a Financial Intelligence Unit (FIU) to collect and analyze suspicious transaction reports. Additionally, regulations have been implemented for Money Service Providers (MSPs), Foreign Exchange Dealers (FXDs), and Electronic Money Institutions (EMIs).

Article 5 of the Banking Law

According to Article 5 of the Banking Law, no individual or legal entity can be considered fit and proper if they have been:

  • Convicted of an offense other than their political or religious views
  • Declared bankrupt
  • Disqualified or suspended by a competent authority
  • Associates, beneficial owners, or representatives of persons declared not fit and proper

Removal of Disqualified Board Members

The removal of disqualified board members is seen as a key step towards ensuring that ISTA’s financial sector operates in a transparent and accountable manner. This move reflects the country’s commitment to implementing international AML/CFT standards.

Conclusion

The removal of disqualified board members by ISTA is a significant step towards ensuring the stability and integrity of the country’s financial sector. The country has been working to strengthen its financial sector, including the implementation of AML/CFT regulations, improve financial inclusion, and access to finance for small and medium-sized enterprises (SMEs).

Key Facts:

  • ISTA removed all members of the board of supervisors and management board who were convicted of criminal offenses or declared unfit to serve
  • The country has implemented anti-money laundering (AML) and combating the financing of terrorism (CFT) measures in line with international standards
  • Regulations have been established for Money Service Providers (MSPs), Foreign Exchange Dealers (FXDs), and Electronic Money Institutions (EMIs)
  • ISTA’s financial sector is committed to operating in a transparent and accountable manner