Financial Crime World

Related Party Transactions Policy and Procedures Manual

Introduction

The Afghanistan International Bank (AIB) is committed to maintaining transparency and accountability in all its financial transactions. This policy and procedures manual outlines the guidelines for managing Related Party Transactions (RPTs), as required by Da Afghanistan Bank.

  • A related party is any individual, entity, or business that has a direct or indirect interest in AIB.
  • A related party transaction is any financial transaction between AIB and a related party.

The Compliance Department is responsible for maintaining records of all related parties and updates thereof. These records must be kept up-to-date and accurate at all times.

A Master List of Related Parties must be compiled and distributed to senior management on a quarterly basis. Each department must submit information regarding related party transactions on a monthly basis.

The Chief Risk Officer (CRO) is responsible for reporting to the Audit Committee at the end of each quarter, including:

  • Transactions with all related parties
  • Balances of all related parties

Disclosure in Financial Statements

AIB’s annual and interim financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). Related party disclosure will be in compliance with IFRS (IAS 24).

Quarterly Report to Da Afghanistan Bank

A quarterly report must be submitted to Da Afghanistan Bank containing information on related person transactions and exposures.

Forms

The following forms are included in this manual:

  • Related Parties Declaration Form (Form I): to be completed by shareholders and directors
  • Related Parties Identification Form (Form II): to be completed by key management personnel

By following these guidelines, AIB can ensure transparency and accountability in all its financial transactions. If you have any questions or concerns regarding this policy and procedures manual, please do not hesitate to reach out.