In accordance with article 5 of Da Afghanistan Bank Law currency exchange refers to receipt of revenues from the exchange of money of one country for money of another country; and Foreign Exchange Dealer means any person who engages in the business of buying and selling foreign currencies, forward exchange contracts, optional contracts, payment in foreign currencies, swaps or other derivative contracts involving a foreign currency transaction.
Conforming with the above mentioned law the licensing authority for Foreign Exchange Dealers is Da Afghanistan Bank (central bank).
Foreign Exchange Dealers are required to report their Suspicious Transaction Reports (STR) to Financial Intelligence Unit of Afghanistan in compliance with article 18 of AML-PC law of the country.
Additionally, article 17 of AML-PC Law and MSP and FXD Regulation obliges the entities in this sector to report their Large Cash Transactions Reports (LCTR) to FinTRACA. The reporting threshold for LCTR is 500,000 AFS, and any consecutive transactions aggregating AFS 500,000 or greater, by and between the same parties that occur within two consecutive days, should also be reported in compliance with the above mentioned legal framework.
