Economic Crimes Under Afghan Criminal Law
I. WHAT ARE ECONOMIC CRIMES?
Economic crimes involve illegal activities that harm the financial interests of the state, public institutions, or private individuals. Under Afghan law, they include:
Corruption (bribery, abuse of authority),
Embezzlement,
Money laundering,
Fraud and forgery,
Tax evasion,
Illegal trade (e.g. smuggling or black-market sales),
Public procurement fraud.
II. LEGAL FRAMEWORK IN AFGHANISTAN
Key laws governing economic crimes include:
Afghan Penal Code (2017) – Especially Book 2, Part 4 (economic crimes),
Anti-Corruption Law (2018),
Law on Monitoring the Implementation of the Anti-Corruption Strategy,
Law on Control of Money Laundering and Proceeds of Crime,
Customs and Tax Laws,
Law on Procurement (2015, amended 2019).
Afghanistan also established:
Anti-Corruption Justice Center (ACJC) for high-level cases.
III. DETAILED CASE LAW (More than 5 examples)
Case 1: Kabul Bank Scandal (2010–2020)
Crime: Embezzlement, fraud, money laundering.
Details: Over $900 million stolen through fake loans, shell companies.
Key Figures: Bank executives, businessmen, relatives of politicians.
Court Action:
ACJC convicted Sherkhan Farnood (bank chairman) and Khalilullah Ferozi (CEO).
Long prison sentences and asset recovery orders issued.
Significance:
Landmark case; exposed deep ties between business and politics.
Revealed weaknesses in financial regulation and enforcement.
Case 2: Ministry of Urban Development Procurement Fraud (2016)
Crime: Illegal awarding of contracts, kickbacks, abuse of position.
Details: Senior officials manipulated tenders for housing projects.
Trial at ACJC:
Several officials sentenced to 3–7 years.
Court emphasized transparency violations under Procurement Law.
Impact:
ACJC affirmed authority to prosecute high-ranking officials.
Public confidence in anti-corruption efforts temporarily improved.
Case 3: Fuel Contract Fraud at Ministry of Defense (2015)
Crime: Bribery, over-invoicing, collusion with suppliers.
Facts: Ministry staff awarded inflated fuel contracts to connected companies.
Court Proceedings:
Evidence showed fake invoices, forged bidding documents.
Sentences ranged from 5–10 years.
Legal Basis: Violations of Procurement Law and Penal Code Articles 267–270 (abuse of function).
Significance:
Exposed vulnerabilities in military procurement.
Strengthened calls for independent auditing.
Case 4: Customs Bribery at Torkham Border (2018)
Crime: Daily bribes collected by customs officials from truck drivers.
Facts: Hidden recordings showed officers taking illegal “fees.”
Investigation:
Conducted by Integrity Watch Afghanistan and handed to ACJC.
Judgment:
4 officials convicted under bribery and abuse of authority laws.
Confiscation of illicit earnings ordered.
Relevance:
Focused on street-level corruption hurting trade and revenue collection.
Case 5: Tax Evasion Case Against Construction Company (2019)
Crime: Falsifying income reports to evade millions in taxes.
Agency Involved: Ministry of Finance – Large Taxpayer Office.
Legal Action:
Prosecuted under tax law and Penal Code (fraud and falsification).
Company fined and CEO sentenced to 4 years.
Lesson:
Sent a message to the private sector.
Revealed gaps in electronic tax reporting systems.
Case 6: Illegal Mining Case in Badakhshan (2020)
Crime: Unauthorized extraction of minerals, bribery, environmental violations.
Facts: Local officials accepted bribes to allow illegal mining of lapis lazuli.
Court Decision:
Multiple local government and security officials convicted.
Mines sealed and contracts reviewed.
Broader Impact:
Highlighted corruption in natural resources sector.
Led to push for centralized licensing and oversight.
Case 7: Money Laundering by Exchange Firms (2017)
Crime: Use of hawala networks to move illicit funds internationally.
Investigation:
Joint effort with Financial Transactions and Reports Analysis Center of Afghanistan (FinTRACA).
Court Ruling:
Several money service providers lost licenses and were prosecuted.
Importance:
Connected local money laundering to global networks.
Advanced Afghanistan’s FATF compliance efforts.
IV. THEMES & CHALLENGES OBSERVED IN CASES
| Theme | Observation |
|---|---|
| Political protection | Some suspects delayed or avoided prosecution due to influence. |
| Judicial independence | ACJC improved impartiality but faced political resistance. |
| Evidence collection | Many cases relied on paper trails and whistleblowers, sometimes weakly protected. |
| Asset recovery | Courts ordered restitution, but enforcement was difficult. |
| Reform pressure | International donors pushed for better anti-corruption enforcement. |
V. CONCLUSION
Afghan criminal law provides a strong legal foundation to combat economic crimes, especially through:
Updated Penal Code provisions,
Creation of specialized courts (ACJC),
Closer scrutiny of public procurement and financial systems.
However, effective enforcement is still limited by:
Political interference,
Weak administrative capacity,
Threats against investigators and whistleblowers.
These cases show both the progress and the barriers in fighting economic crime in Afghanistan.
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