Non-Banking Financial Institutions Supervision Department
Non-Banking Financial Institutions (NBFIs) are financial entities that, like banks, provide financial services, but each non-banking financial institution varies in regard to the nature of work and holds a special license based on their specific activities. Those NBFIs which are currently working in Afghanistan and have obtained their licenses from Da Afghanistan Bank include entities such as FX dealers, money service providers, electronic money services, and financial leasing. In addition, micro-finance and financial leasing institutions can also obtain their related licenses from Da Afghanistan Bank in accordance with the relevant regulation.
At the end of the year 1398, NBFI Supervision Department was established to conduct regulatory and supervisory duties concerning the NBFIs. Along with the progress of activities of the banking sector, the NBFIs Supervision department also experienced significant growth.
To have a sound sector of NBFIs that is able to promote the financial sector along with the banking sector and play a significant part in the economic growth and development of the country.
• To ensure continuously the sound performance of the NBFIs;
• To create 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 limit the danger of money-laundering and terrorism financing through a comprehensive regulatory and supervisory framework;
• To prepare a proper methodology for FinTech in Afghanistan aimed at the financial sector's growth;
Duties and Responsibilities:
The responsibilities of NBFIs Supervision Department include regulating the activities of the NBFIs by developing necessary regulations, policies and manuals, issuing licenses to NBFIs, conducting on-site and off-site supervision, taking corrective and enforcement measures including the issuance of cash penalties concerning NBFIs in the light of legal and regulatory powers.
The current organization structure of NBFIs Supervision Department is composed of several positions including one Director General, one Deputy Director of general affairs and one Deputy in FXDs and Money services providers supervision section as well as six sections and employees in main office and zones of the country.
Deputy Director of General Affairs
This section consists of three departments which include e-money service provider’s supervision, micro-finance and financial lease services providers’ supervision and off-site supervision. These departments conduct all affairs of on-sight and off-sight supervision of the concerned companies.
Deputy Director of FXDs and MSPs Supervision
This section has three departments which include licensing department, anti-money laundering and terrorism finance and general supervision department, and zonal coordination department. These departments conduct all regulatory, licensing and supervision affairs in relation to the activities of foreign exchange dealers and money services providers.