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Licensing and Permitting Procedures for Banks in Afghanistan

The following guidelines outline the procedures for licensing new banks, permitting existing companies to form a bank, and allowing domestic and non-resident branch offices and representative offices.

Part A: Licensing of New Banks

To obtain a banking license in Afghanistan, applicants must follow these steps:

  • The Da Afghanistan Bank (DAB) will notify an applicant within 90 days (6 months for foreign applicants) if their application is complete, preliminarily approved or rejected.
  • If approved, the notice will include conditions or restrictions that must be met before a license is issued.
  • The applicant must submit a notice and request for issuance of the banking license accompanied by documentary evidence within six months from the date of preliminary approval.
  • Once the DAB is satisfied with all requirements, they will issue a final license.

Part B: Existing Companies

An existing company that wishes to form a bank must apply for a banking license and be subject to the same procedures as new bank applicants.

Part C: Bases for Approval, Conditional Approval or Rejection

The DAB will base its decision on the provisions of §1.3.8, which includes reasons such as:

  • Significant supervisory or compliance concerns
  • Inconsistency with other laws or regulations
  • Failure to provide necessary information

Part D: Permitting of Branch Offices and Representative Offices

Applications for permits from domestic banks wishing to maintain a domestic or non-resident branch office or a non-resident representative office must be filed with the DAB. The application form is available from the DAB, Licensing Division.

The following information must be included in the application:

  • By-laws
  • Name and address of the head office
  • Copy of the license
  • Biographical information on officers
  • Scope of work
  • Letter from the foreign bank regulator (if applicable)

Part E: Agreement of Cooperation with Foreign Bank Regulators

No license for a domestic subsidiary of a non-resident bank will be issued without an agreement of cooperation between the DAB and the foreign bank regulator.