AML

1. ANTI MONEY LAUNDERING LAW
OF AFGHANISTAN
AND
LAW ON COMBATING THE
FINANCING OF TERRORISM
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2. As per law which Authority has got the powers to
examine various reporting entities
• Reporting entities have been segregated into two
categories:
1. Entities licensed, regulated or supervised by Da
Afghanistan Bank would be known as regulated
entities and DAB shall have the powers the examine
these entities
2. All the other reporting entities shall be examined by
FIU. FIU shall have the authority to enter any
business premises where they believe there are
records available relevant to ensure compliance with
the law and the reporting entity shall forward any
information required by FIU
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3. What are the provisions relating to punishment
for non-cooperation with FIU in discharging their
duties under the provisions of this law?
• In case an entity obstructs or hinders or fails to
cooperate with FIU in lawful exercising of the powers,
they may be punishable upon conviction:
– In case of an individual by a fine of Afs. 5000 or
imprisonment for not more than 3 months or both.
– In case of a legal entity a fine of Afs. 25000
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4. Authorities to enforce compliance with the law
• Da Afghanistan bank, in case of regulated entities
and FIU in case of other entities will have
following powers to enforce compliance:
– Revocation or suspension of a business license
– Impose on the reporting entity a fine up to 3,000
Afghani
– Order the reporting entity to conduct an external audit
of its affairs, at the expense of the reporting entity, by
an auditor acceptable to Da Afghanistan Bank
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5. Cont…
Order the reporting entity to do all or any of the
following:
– Remove an administrator, officer or employee of the
reporting entity from office
– Ensure that an administrator, officer or employee of
the reporting entity does not take part in the
management or conduct of the business of the
reporting entity except as permitted by Da
Afghanistan Bank;
– Appoint a person or persons acceptable to Da
Afghanistan Bank as administrator of the reporting
entity for such term as the order specifies
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6. What are the protections available to reporting
entities and its employees
• No action of any kind shall be taken against an
employee or against the reporting entity for
transmitting information or submitting report if the
same is transmitted or submitted in good faith under
the provisions of this law
• If a transaction or an asset is frozen by a reporting
entity in compliance of the law and due to such
freezing a customer suffers a loss, the reporting entity
or its director/ employees shall be exempt from any
kind of administrative or criminal action against them.
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7. What is the Punishment for a natural
person for offense of money laundering
• Imprisonment for not less than two years and not
more than five years
• Fine of not less than 50,000 Afghani or more than
250,000 Afghani and or both
• These penalties will be applicable even for
abetting, facilitating, or counseling for a money
laundering offense
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8. What are the Penalties applicable to
corporate entities
• If the offense of money laundering is committed by an
employee, agent or representative of a corporate entity
• The corporate entities shall be a fine of not less than
250,000 Afghani and not more than 1,250,000 Afghani.
• In addition to the financial penalty as specified above, a
corporate entity may also be:
– Banned for a period up to five years from carrying on certain
business activities;
– The corporate entity may be dissolved if the entity was set up
for the purpose of committing the offense or it allowed its
premises to be used for such purpose;
– The entity may be asked to publicize the judgment in press or
in other media.
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9. Offences related to money laundering
• Intentionally discloses a report which has been filed under the law to the people
who are not entitled to receive the report;
• Intentionally informs about an investigation under the law to the people who are
not entitled to receive the information;
• Intentionally destroys any record which needs to be maintained under the law;
• Under a false identity performs or attempts to perform:-
• Cross border funds transfer without observing the provisions of the law relating
to such activity;
• Contravenes provisions relating to identification of customers set out in the law;
• Contravenes provisions relating to internal money laundering program at the
reporting entities;
• Knowingly Communicates wrong information or wrong records to the competent
authority;
• Intentionally fails to report a suspicious transaction.
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10. As per law what is the penalty for
offenses related to money laundering
• The penalty for the offense related to money
laundering is as under:
– In case of natural persons: Imprisonment for six
months to one year and/ or penalty between Afs.
5000 to Afs. 25,000
– In case of Corporate entities- Penalty of Afs 25000 to
Afs 125,000
– The entities found guilty of the offense may also be
banned permanently or for maximum of five years
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11. What is the punishment if the offense is committed by a
member of a criminal organization or by a corporation
owned by a criminal organization?
• If the offense is committed by a member of a
criminal organization or by a corporate entity
which is owned or controlled by a criminal
organization,
• The penalty shall be:
– In case of natural person:
» Imprisonment between five to fourteen years and/ or
fine
» between 500,000 to 2,000,000.
– In case of corporate entities:
» Fine between 2,000,000 to 10,000,000.
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12. What are the Penalties applicable to persons
committing an offense of financing of terrorism
• The penalty of imprisonment for not less than
five years or more than fifteen years and a fine
of not less than 250,000 Afghani to 1,500,000
Afghani is imposed on anyone who commits a
terrorism financing offence
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13. What are the Penalties applicable to corporate
entities found guilty of financing of terrorism?
A agent of corporation/person commits an offence of
financing of terrorism
– Fine of not less than 1.5 million Afghani and not more
than 4.5 million Afghani
– Individuals who committed the offense may also be
penalized. The corporate entities may also be:
• Banned its business activity for a period of 5 years or may be banned
permanently
• May be dissolved if the corporation was set up for the purpose of
committing the offense of financing of terrorism
• The corporation may be asked to publicize the court judgment in the press
or in any other media
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14. What are the Penalties applicable to not-for-profit
organizations for non-compliance with the
provisions of the CFT law
• Fine of not less than 5,000 or more than
50,000 Afghani
• Temporary ban on the activities of the
organization of no more than six months;
and/or
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