Skip to content

Finance flowing out (II)

March 21, 2012

I mentioned Afghan money being moved out of Afghanistan earlier.  More, from the Financial Times, on this crucial indicator of how influential Afghans view the prospects for their country over the coming years.

if your own country crumbles, invest in a new one...

March 2011, Financial Times: Afghanistan has taken new steps to combat rampant capital flight after the central bank found that the amount of dollars flown out of Kabul doubled to $4.6bn last year… The $4.6bn of declared dollar exports via Kabul airport last year was almost equivalent to Afghanistan’s 2010-11 state budget of $4.8bn.

Important, yes, but very difficult to track down information on the extent to which money is moving out – trickle, flow or flood?   I am no finance expert, but this solution – imposing a $20,000 limit to what can be taken out of the country – does not seem to be particularly enforceable and certainly something that could be bypassed with a little bit of bribery.  Moreover, this money flow problem has been around for years – only now is a half-hearted effort being made to close the door?  See this from the Guardian in 2010.

In one astonishing incident in October 2009 the then vice-president, Ahmad Zia Massoud, was stopped and questioned in Dubai  when he flew into the emirate with $52m in cash, according to one diplomatic report. Massoud, the younger brother of the legendary anti-Soviet resistance leader Ahmad Shah Massoud, was detained by officials from the US and the United Arab Emiratestrying to stop money laundering, it says.  However, the vice-president was allowed to go on his way without explaining where the money came from.

Perhaps this “major impact on financing terrorism as well as on money laundering” could have been initiated a few years back?  Be interesting to see how effectively this law is enforced.

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: