The Central Bank of Afghanistan (CBA) said the bank will implement systems in the banking sector to prevent the flow of black money in the country's monetary system.

Officials at the bank told TOLOnews that after Afghanistan was removed from the Financial Action Task Force’s (FATF) gray list last year, Afghan banks have been able to work to expanding their businesses and to work with foreign banks. 

Meanwhile, the Afghan Banking Association says the Central Bank must also streamline the trading process by standardizing its systems and by digitalizing their monetary transaction process. 

Seven months ago, Afghanistan was removed from the FATF’s gray list.

However, Afghanistan needs to ensure that no black money, or money earned through illegal activities can be processed through their banks. Banks can also not deal with funds to finance insurgent groups in the country. 

“It's not easy to get off of the gray list, therefore, we need to work to improve the situation and we have programs in this section,” said Wahidullah Nawsher, first deputy of the CBA chairman.

But concerns have been raised inside the country that the open borders of Afghanistan with neighboring countries, especially with Pakistan, a country accused of supporting terrorist activities, the usage of Pakistani rupees in the country, and the absence of official financial services could pose as problems.

“To work out the monetary system, work needs to done to ensure digitalized identification of people because, for example, many bank customers have many ID cards, each with a different name,” said Najibullah Amiri, the Banking Association’s CEO. 

Union officials said that by improving and regulating the financial services sector, banks will be able to grow and global confidence in Afghanistan’s banking system will develop. 

Countries on the FATF’s gray list struggle under strict limitations in terms of financial dealings. 

In March last year the Central Bank of Afghanistan said it had met all the requirements of FATF and after a rigorous assessment, Afghanistan was removed from the list.