Role of the Financial Intelligence Unit in Implementing an Effective Anti-Money Laundering (AML) Framework

1. Role of the Financial Intelligence Unit in Implementing an Effective Anti-Money Laundering (AML) Framework Jafar Sadat, Da Afghanistan Bank General Director, Financial Transactions and Reports Analysis Center of Afghanistan (FinTRACA)

2. Financial Intelligence Unit Functions • Core Functions • Receive Reports and Information • Report of any cash transaction designated by DAB regulation • Reports of suspicious transactions or attempted transactions • Receive information from Afghani government sources • Receive information from foreign government sources • Analyze Reports and Information • Match with other government data • Match against patterns, lists, and indicators • Identify trends • Identify new patterns and indicators • Disseminate Information and Analysis • Transmit analysis (but not original reports) to prosecutors when a suspicion is confirmed • Transmit information to competent foreign bodies upon receipt of valid request

3. Financial Intelligence Unit Functions • Other Functions • Training • Training of reporting entities • Training of FIU staff • Training of DAB and other Government Staff • International cooperation • Cooperation in the development of standards • Exchange of staff • Development of Typologies • Improvement of AML Law and Regulations • May propose new laws and regulations • May propose improvements to laws and regulations • Working with non-regulated reporting entities

4. Main Featuresof the Financial Intelligence Unit • Confidentiality • Information received by the FIU may only be used for purposes specifically authorized by law • Employees of the FIU are required to respect this confidence even after their employment with the FIU ends • Security • Physical and electronic protection of information received against unauthorized access. • Security of communication channels with reporting entities • The identify of the reporter will only be released by court order

5. Structure of FIU • Independent Office within DAB • Reports to DAB Executive Council • Budget approved by the DAB Supreme Council • General Director appointed by DAB Supreme Council • General Director has the power to hire and fire staff

7. مفهوم بین المللی • FinTRACA is one of nearly 100 financial intelligence units around. • These units belong to various organizations that facilitate cooperation and information sharing • FinTRACA has joined one such organization known as the Asia Pacific Group, which includes most South Asian Countries • When its capabilities are more developed, FinTRACA will apply for membership to the Egmont group of Financial Intelligence Units

8. FIU Legal Powers Power to: • Request available information from any government source • Request information from foreign government sources (with some limitations) • Provide information to foreign governments • Request and receive information from reporting entities (without charge) for the purpose of exercising legal functions • Examine records and business relations of non-regulated reporting entities • May enter premises of reporting entities for the purpose of ensuring compliance • Order the freezing transactions for a period of up to seven days

9. Contact Information • To Send Reports • E-mail Reports@Fintraca.gov.af • Public key available for secure transmission • To Receive Information • E-mail Info@Fintraca.gov.af • Web Site with forms and information • http://www.fintraca.gov.af