Non-Banking Financial Institutions Supervision Directorate General

Non-Bank Financial Institutions (NBFIs) are entities that provide financial services similar to banks; however, each NBFI differs in its operations and holds a specific business license according to its designated activities. Currently, NBFIs operating in Afghanistan with licenses issued by Da Afghanistan Bank include FXDs and MSPs, electronic money institutions, and payment institutions. Moreover, leasing institutions and microfinance institutions may also obtain the relevant business license from Da Afghanistan Bank in accordance with the applicable regulations.

At the end of 1398, the NBFI Supervision Directorate was established to conduct regulatory and supervisory duties concerning the NBFIs.  In parallel with the growth and development of the banking sector, the NBFI Supervision Directorate has also experienced significant expansion.

Vision:

To establish a strong and resilient non-bank financial institutions (NBFI) sector that, along with the banking sector, promotes the growth of the financial sector and contributes significantly to the country’s economic development.

Objectives:

• To ensure the sound performance of the NBFIs;

• To establish a proper framework for developing the NBFIs sector;

• To take measures for preventing illegal activities of the institutions;

• To protect the financial sector's consumers;

• To combat unlicensed deposits and black money in the NBFIs sector;

• To reduce the risk of money-laundering and terrorism financing through a comprehensive regulatory and supervisory framework;

• To develop a proper approach for promoting FinTech in Afghanistan to support the growth of the financial sector;

Duties and Responsibilities:

The responsibilities of the NBFI Supervision Directorate include regulating the activities of NBFIs through the development and implementation of necessary regulations, policies, and guidelines; issuing business licenses to NBFIs; conducting on-site supervision and off-site analysis and assessment; and implementing corrective and enforcement measures, including monetary penalties on NBFIs, within the scope of legal and regulatory authority.

Organizational Structure

The organizational structure of the NBFI Supervision Directorate consists of one Directorate, two Deputy Directorates, including the Deputy Directorate General and the Supervision of the FXDs and MSPs Supervision Deputy Directorate, and six Sections, with staff located at the head office and the zones.

General Affairs Deputy Directorate:

The General Affairs Deputy Directorate consists of three directorates: the Electronic Money Institutions Supervision Section, the Microfinance and Leasing Institutions Supervision Section, and the Off-Site Monitoring and Follow-Up Section. This Deputy Directorate is responsible for conducting both on-site and off-site supervision of the respective institutions.

FXDs and MSPs Supervision Deputy Directorate

The Deputy Directorate comprises three directorates: the Licensing Section, the General Supervision and Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Section, and the Zones Coordination Section. These Sections may handle all regulatory, licensing, and supervisory activities related to FXDs and MSPs.