It lacked independence from the Taliban, had deficiencies in anti-money laundering and countering ‘terrorism’ financing.
A US-funded evaluation of Afghanistan’s central financial institution discovered that it lacks independence from the Taliban administration and sufficient safeguards towards cash laundering and terrorism financing, a US watchdog has advised the US Congress.
The US Particular Inspector Common for Afghanistan Reconstruction (SIGAR), in a quarterly report back to Congress on Tuesday, disclosed that the evaluation discovered flaws with the administration of the central financial institution, often known as Da Afghanistan Financial institution, or DAB.
The DAB “lacked independence from the Taliban regime and had deficiencies in anti-money laundering and countering the financing of terrorism”, SIGAR stated the evaluation confirmed.
The US Company for Worldwide Growth funded the evaluation by an out of doors contractor.
The discovering that DAB lacks independence from the Taliban, which returned to power after the August 2021 US troop pullout, apparently referred to the three Taliban officers who oversee the financial institution and are beneath US and UN sanctions.
Considerations in Washington and different capitals in regards to the financial institution’s management and anti-money laundering safeguards are on the coronary heart of a standoff over the Taliban’s demand for the return of DAB money frozen in different nations since their takeover.
Half of about $7bn frozen within the US Federal Reserve Financial institution of New York was placed in the Swiss-based trust fund. The remaining is being sought in lawsuits towards the Taliban introduced by households of victims of the September 11, 2001, assaults on america. The Taliban harboured al-Qaeda fighters who plotted the assaults.
A US Treasury official advised the Reuters information company final month on situation of anonymity that Washington is not going to assist a return to DAB of Swiss-based belief fund property till the financial institution reveals it’s free “from political affect and interference.”
It additionally should show “sufficient” controls towards cash laundering and terrorism financing, the official stated.