September 17, 2021
Reassessing Counter Terrorism Financing in a Taliban-Controlled Afghanistan
The Taliban’s rapid takeover of Afghanistan set back decades-long efforts to integrate Afghanistan into the international community. Nowhere is this more apparent than on anti-money laundering and countering-the-financing-of-terrorism (AML/CFT) reforms, a policy area in which Afghanistan made substantial progress over the past several years to raise compliance standards and crack down on major vulnerabilities in its economy, particularly the under-regulated hawala money transfer system.
Now, the Taliban, a group sanctioned by the United Nations, the United States, and other international partners, oversees Afghanistan’s enforcement of AML/CFT and economic sanctions. The Taliban is unlikely to meaningfully enforce United Nations sanctions against itself or crackdown against the hawala industry in the same way as the previous government. As a former senior Treasury Department official recently noted, “I can’t think of any case in which a terrorist group that’s already designated became the power in charge of a full country.”
The Taliban’s rapid takeover of Afghanistan set back decades-long efforts to integrate Afghanistan into the international community.
Particularly after the Islamic State-Khorasan’s (ISIS-K) tragic and brazen attack at the Kabul airport that killed 13 U.S. military personnel along with over 160 Afghan civilians, the Taliban must be held responsible for allowing terrorist groups to operate in Afghanistan. Addressing AML/CFT risks presents one concrete way for the international community to measure the Taliban’s actions rather than its rhetoric in addressing terrorism and terrorism financing.
Understanding Afghanistan’s post-9/11 economic history allows policymakers to better address the current crisis.
After decades of conflict and the Taliban’s prior five-year rule (1996-2001), Afghanistan’s formal financial system was “virtually non-existent,” according to a 2003 World Bank study. Instead, it relied (and still relies) heavily on hawala, a centuries-old informal money exchange system that provides for both domestic and international transfers. According to The Economist, “regulators around the world hate the system, because of its opacity and its role in helping to fund terrorism.”
Read the full article from Just Security.
More from CNAS
-
No Grid, No Glory: What History Teaches Us About the Next Major War
Commentary
This article was originally published on The National Interest.The Trump Administration’s new National Security Strategy goes to great lengths to do what every good strategist...
By Will Rogers
-
Breaking the Rare Earths Dependency with Chris Kennedy
Podcast
Geoff sits down with Chris Kennedy to unpack the Trump administration’s National Security Strategy and debate what it will take for the United States to overcome its dependenc...
By Geoffrey Gertz, Emily Kilcrease & Chris Kennedy
-
Commentary
Energy, Economics & Security / Technology & National Security
Recommendations for Promoting American AI AbroadStrategic Context and Program Objectives The American AI Exports Program is an ambitious and essential proposal to expand the reach of American AI technologies in foreign mar...
By Janet Egan, Geoffrey Gertz, Daniel Remler & Ruby Scanlon
-
Rational Security: The “Adverse Possession” Edition
Podcast
This week, Scott sat down with Lawfare Managing Editor Tyler McBrien and Contributing Editor and CNAS adjunct senior fellow Alex Zerden to talk through a few of the week’s big...
By Alex Zerden
