Financial Crime World

Afghanistan Tightens Anti-Money Laundering Regulations

To protect financial institutions and comply with international obligations, the Financial Transactions and Reports Analysis Center of Afghanistan (FinTRACA) has been working to prevent the misuse of Afghan financial institutions by individuals involved in illegal activities.

Independence and Autonomy

FinTRACA is a Financial Intelligence Unit established in 2006, which operates independently and autonomously. This allows it to make decisions without interference from other entities.

Mission and Objectives

According to the amended Anti-Money Laundering and Proceeds of Crime Law, FinTRACA’s main goal is to protect the integrity of Afghanistan’s financial system and comply with international treaties and conventions. The unit is administratively housed within the Da Afghanistan Bank (Central Bank of Afghanistan) but operates independently in its enforcement powers.

  • Deny access to Afghan financial institutions for individuals who have obtained funds illegally
  • Prevent the use of financial systems to support terrorist activities or other crimes

Collaboration and Information Sharing

FinTRACA collaborates with financial supervisors, law enforcement agencies, and prosecutors to build an environment that identifies and combats money laundering activity and terrorist financing.

  • Receive, analyze, and disseminate financial intelligence to various government bodies, law enforcement agencies, and international counterparts
  • Provide strategic intelligence, including statistics, trends, and typologies, to increase awareness of money laundering and terrorism financing trends in Afghanistan

Data Collection and Analysis

To meet its objectives, FinTRACA collects and analyzes information from various sources, including entities required by law to submit reports when suspicious transactions are detected or cash transactions above a specified threshold amount.

  • Analyze information to support the suspicion of illegal use of the financial system
  • Work closely with law enforcement agencies and the Attorney General’s Office to support investigations into illegal activity

Benefits and Impact

The unit’s efforts aim to create an environment that prevents the misuse of Afghan financial institutions and promotes compliance with international regulations. By strengthening its anti-money laundering regulations, Afghanistan demonstrates its commitment to combating money laundering and terrorism financing, ultimately benefiting the country’s relations with the global community.

  • Prevents illegal activities from affecting the integrity of Afghanistan’s financial system
  • Complies with international obligations and treaties
  • Strengthens relations with foreign countries and international organizations