Anti-laundering unit goes off-grid, fraying Afghan ties to world finance

  • Monetary intelligence unit FinTRACA launched in 2006
  • FinTRACA misplaced entry to worldwide safe server in August
  • Workers worry retribution from Taliban
  • Lack of operational unit will hamper world monetary ties

LONDON, Sept 15 (Reuters) – A unit in Afghanistan’s central financial institution main a 15-year effort to counter illicit funding flows has halted operations, 4 workers members mentioned, threatening to hasten the nation’s slide out of the worldwide monetary system.

Since 2006, the Monetary Transactions and Experiences Evaluation Middle of Afghanistan (FinTRACA) has gathered intelligence on hundreds of suspicious transactions and helped convict smugglers and terrorist financiers, in line with its web site.

UN officers have mentioned the Taliban, who seized Kabul on Aug. 15, made tons of of tens of millions of {dollars} from the medicine commerce and different illicit sources after they have been preventing authorities troops. The group has vowed there can be no drug cultivation in Afghanistan from now.

Data on FinTRACA’s web site indicated the Taliban have been amongst these in its sights, whereas the workers Reuters spoke to mentioned the group had been a goal since its launch.

They declined to be named due to worry of reprisals owing to the delicate nature of their work.

With the Islamist militant motion again in energy, the absence of a functioning monetary intelligence unit (FIU) may curtail Afghanistan’s hyperlinks to the worldwide monetary system and to lenders overseas, some consultants warned.

Such items, which scrutinise cash flows for potential suspicious exercise, are vital for any nation that seeks to take part within the world monetary neighborhood, mentioned Stuart Jones, Jr., founder and chief government of danger intelligence agency Sigma Scores.

He was additionally U.S. Treasury attache to Afghanistan between 2008 and 2010.

Reconnecting with the monetary system could possibly be sophisticated by present sanctions towards the Taliban and the truth that a senior authorities minister heads a U.S.-designated terrorist organisation.

“Afghanistan was thought-about high-risk by almost all world monetary establishments pre-Taliban takeover,” mentioned Jones.

“Now, with untested management on the central financial institution, an inoperable monetary intelligence unit and present asset freezes on the ruling authorities by the United Nations and terror designations of key figures by america, I might count on international monetary establishments to tread extraordinarily fastidiously.”

The central financial institution didn’t reply to a number of makes an attempt to achieve it through e mail and phone.

The Taliban need entry to reserves being held overseas in addition to help and different financing, because the economic system reels from a long time of conflict, drought, meals shortages and the exodus of hundreds of pros.


The Taliban have mentioned they need professionals to return to work to assist revive the economic system and vowed there can be no vendetta towards previous opponents. However many members of the ousted administration have fled the nation or stay in hiding.

Three workers members mentioned a few of FinTRACA’s 60-odd staff had left Afghanistan or gone underground in latest weeks.

One, who remains to be in Afghanistan, complained that worldwide companions did not get workers and their dependents out throughout the mass evacuation from Kabul that ended final month.

A Taliban spokesperson didn’t instantly reply to a request for touch upon the standing of FinTRACA workers or whether or not the unit would function in future.

The U.S. Treasury, which supplied technical help to the unit with different nationwide and worldwide our bodies, declined to touch upon FinTRACA workers nonetheless in Afghanistan.

Some FinTRACA workers returned to the workplace final week after a request by appearing central financial institution governor, Haji Mohammad Idris – a Taliban loyalist – for all central financial institution workers to be current within the financial institution, mentioned one of many staff.

The worker added that the unit’s senior administration weren’t current and it was nonetheless not working.

Some elements of the central financial institution are operational. Idris has been assembly with industrial banks and the central financial institution has equipped restricted liquidity to banks whereas issuing directives to regulate scarce U.S. greenback provides, say bankers.


FinTRACA supplied intelligence to the worldwide neighborhood by means of agreements with related items from international locations together with Britain and america.

It additionally did so through Egmont Group, which exchanges data on illicit flows between greater than 160 intelligence items and companions totally different our bodies within the struggle towards cash laundering and terror financing.

FinTRACA was disconnected from Egmont Group’s worldwide safe server on Aug. 15, the day the Taliban took Kabul, Egmont Group mentioned on Sept. 2.

The group mentioned it stood “in solidarity with our colleagues at FinTRACA and hopes that they and their households are secure.”

Egmont Group didn’t reply to requests for an replace on FinTRACA’s standing. One FinTRACA workers member mentioned it was nonetheless disconnected on Tuesday.

“Disconnecting is a loss for the worldwide FIU neighborhood because the purpose is at all times to foster better cooperation, however the underlying precept beneath which this cooperation takes place is belief and that isn’t in place for the time being in Afghanistan,” mentioned Mariano Federici, managing director of K2 Integrity and former chair of Egmont Group.

FinTRACA’s web site, which seems largely untouched for the reason that Taliban’s takeover, lists the Taliban as a terrorist group entity prohibited from depositing or withdrawing U.S. greenback financial institution notes.

One of many unit’s roles included making a “Watch-Checklist” of people deemed high-risk to the monetary system.

As not too long ago as August, the unit logged 25 suspicious transactions studies in its database, taking the full for the 12 months to this point to 645, knowledge on its web site present.

With FinTRACA mothballed, native banks count on Afghanistan’s standing to be lowered by the Monetary Motion Process Pressure (FATF), a bootleg flows watchdog, in a transfer that might additional diminish its connectivity to the worldwide monetary neighborhood.

“The FATF is intently monitoring the creating state of affairs in Afghanistan,” the group mentioned in an announcement.

The Asia/Pacific Group on Cash Laundering, of which Afghanistan is a member, didn’t reply to a request for remark.

Further reporting by Karin Strohecker and Andrea Shalal; Modifying by Mike Collett-White

Our Requirements: The Thomson Reuters Belief Ideas.

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