SWIFT & SAFE WATCH RULE IN STOPPING TERRORIST FINANCING By: Mahboob S. Frotan Head of Payments & SWIFT Chairperson for AFG KABUL BANK - AFGHANISTAN

AGENDA INTRODUCTION TO ANTI MONEY LAUNDERING SIDE SAFE WATCH (AML SOLUTION) SAFE WATCH BENEFITS IMPORTANCE OF AUTOMATED CHECKING INTEGRATION WITH SWIFTALLIANCE AVAILABLE LISTS CUSTOMER IDENTIFICATION RESPONSIBILITY OF BANKS

INTRODUCTION TO ANTI MONEY LAUNDERING (AML) Anti Money Laundering (AML) is set of techniques that are used to identify and fight against means that organized crimes uses to “clean” money that is the result of illegal activity so it can be spent legally.

SIDE SAFE WATCH (AML SOLUTION) This solution is being developed by SIDE Resources and Development company located in Belgium Kabul Bank is proud of implementing Safe Watch in February 2006 and it is the only bank having AML. Now all the inward and outward transactions are scanning.

SAFE WATCH BENEFITS Allows you to be compliant with regulations Reduces your risk and exposure Prevent funds seizures and penalties Integrate seamlessly with banking systems Increase efficiency of manual controls Offers the possibility to integrate your own lists Integrates official lists updates Provides full security, reporting and audit Standard version simple to install and maintain The best Cost/Benefits ratio

IMPORTANCE OF AUTOMATED CHECKING Considering the importance of the financial transaction flow running now a days through the institutions, checking all transactions against blacklist manually impossible. On the other hand, legal pressure on compliance officers to implement full checking and reporting has been growing these last years.

Integration with SWIFT Alliance

AVAILABLE LISTS PackageList NameSizeAvailability USOFAC2500+SIDE Website OFAC Blocked Countries<10SIDE Website Weapons of Mass Destruction10+SIDE Website OFAC PEPPolitically Exposed Persons of OFAC Sanctioned Countries 250+SIDE Website BOEBank of England1200+SIDE Website EUEU Regulations (e-CTFSL)1200+SIDE Website FATF/GAFI non cooperative countries & territories<10SIDE Website CSSFCSSF – Luxembourg1200+SIDE Website SECOSECO – Switzerland1000+SIDE Website MASMAS – Singapore400+SIDE Website UNUN Al-Qaida & Taliban400+SIDE Website UN Iraq200+SIDE Website UN Liberia<100SIDE Website WCWorld-CheckN/Acontract with World- Check BISBureau of Industry and Security Denied Persons List300+SIDE Website Factiva PFAFactiva Public Figures & AssociatesN/AContract with Factiva

CUSTOMER IDENTIFICATION Name F.Name Date of birth Place of birth National ID No or passport no. Date and place of issue Profession

RESPONSIBILITIES OF BANK Checking remitter and beneficiary full details Asking prove for the transaction Checking fully the data provided by the remitter Reporting LCTR and STR to Central Bank

CONTACT Mahboob S. Frotan Head of Payments & SWIFT UGC for Afghanistan KABUL BANK - AFGHANISTAN