EMIS (ELECTRONIC MONEY INSTITUTIONS)

Electronic money institutions are a category of non-banking financial entities that accept physical currency and various forms of payment in exchange for electronic money, while also facilitating the transfer of payments in electronic form. Electronic money represents a monetary value stored within a designated network, utilized for payments or money transfers in a non-physical format, typically in limited amounts via mobile phones. The primary objective of regulating these institutions within the country is to prevent money laundering and other serious financial crimes, thereby ensuring the protection of these institutions from potential misuse and exploitation.

Pursuant to Article 17 of the Anti-Money Laundering and Proceeds of Crime Law and Article 38 of the Regulating and Supervision of Electronic Money Institutions Regulation, all aforementioned institutions across the country are mandated to report their Large Cash Transactions Reports (LCTRs) to the Financial Transactions and Reports Analysis Center of Afghanistan (FinTRACA) within the prescribed time frame. Additionally, in accordance with Article 18 of the Anti-Money Laundering and Proceeds of Crime Law, these institutions are required to report any Suspicious Transaction Reports (STRs) to FinTRACA within a maximum of three working days.

It is important to note that, in accordance with the Regulating and Supervision of Electronic Money Institutions Regulation, the reporting threshold for these institutions is set at 50,000 Afghanis or its equivalent in other currencies. Furthermore, any cumulative transactions conducted over a span of two working days, totaling 50,000 Afghanis or more, are also subject to reporting.

According to the following table, until now, DAB has granted licenses to six electronic money institutions: