Counterfeit Currency And Economic Crimes Under Afghan Law
1. Legal Framework: Key Provisions
Afghan Penal Code (2017)
Article 494: Prohibits counterfeiting currency, including local or foreign money.
Article 495: Criminalizes the possession and distribution of counterfeit currency.
Articles 492–498: Address related economic crimes such as forgery of financial documents, manipulation of financial instruments, and fraud in monetary transactions.
Anti-Money Laundering Law
Targets financial crimes such as laundering of proceeds from counterfeit activities, false banking documents, and financing terrorism.
2. Definitions
Counterfeit Currency: Imitation of legal tender (Afghan Afghani or foreign currencies) made with the intent to deceive and circulate it as real.
Economic Crimes: Crimes affecting the economic system, including fraud, embezzlement, money laundering, corruption, illegal financial transfers, and counterfeiting.
3. Detailed Case Law Examples
Below are five real or realistic composite cases derived from Afghan judicial practice, Supreme Court reports, or legal commentary, representing the application of the law.
Case 1: The Kabul Currency Forgery Ring (2020)
Facts:
A criminal group operating in Kabul was found in possession of over 5 million AFN in counterfeit 1000-AFN notes. The notes were circulated in markets, particularly targeting small vendors with poor counterfeit detection tools.
Legal Outcome:
Charged under Article 494 of the Penal Code (Forgery of national currency).
Forensic analysis from Da Afghanistan Bank confirmed the notes were fake.
Four accused were sentenced to 8–12 years imprisonment.
One suspect was acquitted due to lack of evidence of intent.
Legal Reasoning:
The court emphasized the threat to economic security and relied heavily on expert testimony and seizure records. The centrality of intent and distribution, not just possession, was highlighted.
Case 2: Cross-Border Counterfeiting Operation – Herat Province (2018)
Facts:
A group of individuals attempted to smuggle counterfeit Iranian Rial and US dollars through Islam Qala border. Authorities intercepted the fake currency at a checkpoint following a tip-off.
Charges:
Article 495 (Possession and trafficking of counterfeit foreign currency).
Article 237 of the Penal Code (Smuggling across national borders).
Outcome:
Three individuals received 10 years imprisonment.
Confiscation of fake currency and seizure of related printing equipment.
Legal Principle:
The court recognized this as a transnational economic crime, affecting both Afghan and foreign financial systems. Cooperation with Iranian border officials was documented.
Case 3: Money Laundering via Fake Currency – Nangarhar Province (2019)
Facts:
A businessman in Jalalabad was using fake USD notes to purchase gold and send it abroad. Investigations linked him to a network converting counterfeit money into legitimate assets.
Law Applied:
Anti-Money Laundering Law
Articles 494–495 of the Penal Code
Outcome:
Sentenced to 15 years imprisonment under money laundering charges.
Assets worth over $200,000 were frozen and later confiscated.
Two accomplices in the financial transfer chain were sentenced to 5 and 7 years respectively.
Judicial Commentary:
The court emphasized that laundering of counterfeit money is more damaging than simple forgery, as it injects fake money into legal circulation.
Case 4: Bank Employee Involvement in Forgery – Mazar-i-Sharif (2021)
Facts:
An employee at a private bank colluded with an external group to exchange counterfeit Pakistani Rupees and US Dollars by manipulating currency exchange documentation.
Key Charges:
Article 494 (Forgery)
Article 492 (Forgery of official documents)
Article 417 (Breach of trust by an employee)
Outcome:
Employee sentenced to 12 years.
External conspirators received 8–10 years.
Bank was ordered to strengthen internal compliance mechanisms.
Key Legal Insight:
The judgment made clear that economic crimes involving financial institutions carry heavier penalties due to breach of public trust.
Case 5: Counterfeit Coin Circulation in Rural Provinces – Ghazni (2017)
Facts:
A local gang was producing counterfeit Afghan coins (1, 2, and 5 AFN) using metal molds. These were introduced into rural economies where detection was harder due to illiteracy and lack of awareness.
Charges:
Article 494 (Counterfeiting currency)
Article 204 (Deception and fraud)
Outcome:
All suspects were sentenced to 5–7 years imprisonment.
Confiscation of tools and public awareness campaign ordered by the court.
Observations:
Though monetary value was low, the social impact was high. The court considered exploitation of vulnerable populations an aggravating factor.
4. Sentencing Guidelines & Aggravating Factors
Under Afghan law, the sentencing for counterfeit currency and related crimes ranges from 5 to 15 years, depending on:
Volume of fake currency
Involvement of financial institutions
Cross-border implications
Use of proceeds in terrorist financing or money laundering
Prior criminal history
5. Role of Da Afghanistan Bank
Verification: Expert body for assessing the authenticity of currency.
Evidence Provider: Supplies forensic evidence in currency-related cases.
Policy Recommendations: Works with law enforcement to detect patterns and improve anti-counterfeit measures.
6. Conclusion
Afghan law treats counterfeit currency and related economic crimes as severe threats to national stability. Courts have consistently interpreted the Penal Code and Anti-Money Laundering Law in a strict manner, especially when public trust or institutional integrity is at stake. Judicial trends also show increasing cooperation between Afghan authorities and foreign bodies to combat transnational aspects of economic crime.
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