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1. Da Afghanistan Bank
is the central bank of
2. Da Afghanistan Bank is a juridical person with full capacity under the law of Afghanistan, and, in particular, the capacity to contract, to acquire and to dispose of movable and immovable property, to issue its own securities and otherwise to borrow, and to be a party to legal proceedings.
3. Da Afghanistan Bank
shall have its head office in
1.The primary objective of Da Afghanistan Bank shall be to achieve and to maintain domestic price stability.
2. The other objectives of Da Afghanistan Bank, which shall be subordinated to the primary objective of Da Afghanistan Bank, shall be to foster the liquidity, solvency and proper functioning of a stable market based financial system, and to promote a safe, sound and efficient national payment system.
3.Without prejudice to its primary objective of domestic price stability, Da Afghanistan Bank shall support the general economic policies of the State,, and contribute to sustainable economic growth.
4. The basic tasks of Da Afghanistan Bank for which Da Afghanistan Bank shall be responsible are:
a.
to formulate, adopt and execute the monetary policy of
b.
to formulate, adopt and execute the foreign exchange policy and exchange
arrangements of
c.
to hold and manage the official foreign exchange reserves of
d. to print and issue afghani banknotes and coins;
e. to act as banker and adviser to, and as fiscal agent of, the State;
f. to issue or register the license and to regulate and supervise banks, foreign exchange dealers, money service providers, payment system operators, securities service providers, securities transfer system operators and such others as shall be submitted to its oversight in accordance with the law;
g. to establish, maintain and promote sound and efficient systems for payments, for transfers of securities issued by the State or Da Afghanistan Bank, and for the clearing and settlement of payment transactions and transactions in such securities.
1. In carrying out its tasks, Da Afghanistan Bank shall enjoy autonomous regulatory powers, including those to pass regulations to facilitate [orderly] electronic transactions between Da Afghanistan Bank and banks and their respective customers. Da Afghanistan Bank shall maintain a public register of such regulations, guidelines and instructions.
2. Da Afghanistan Bank shall be empowered to enter the offices and to examine the accounts, books, documents and other records of any bank, foreign exchange dealer, payment system operator, money service provider, securities service provider, securities transfer system operator or other person who is licensed in accordance with this law and is registered with or by Da Afghanistan Bank, and to obtain such information from such person as Da Afghanistan Bank shall deem necessary for the [proper] discharge of its supervisory responsibilities.
3. Da Afghanistan Bank shall, in accordance with this law, be entirely independent in the pursuit of its objectives and the performance of its tasks. no person shall seek to exercise improper influence on members of the decision-making bodies of Da Afghanistan Bank in the performance of their tasks or interfere in any other way in the activities of Da Afghanistan Bank.
4. Each member of the Supreme
Council and the Executive Board and each other employee of Da
Afghanistan Bank shall have the duty to promote the reputation of Da Afghanistan Bank as a completely autonomous central bank
serving all of
5. While serving in the supreme council, members of the supreme council of Da Afghanistan Bank shall not engage in political activities.
Article 4. International cooperation
1. Da Afghanistan Bank
shall represent
2. Da Afghanistan Bank
may provide banking services for the benefit of foreign governments, foreign
central banks and monetary authorities,
and for the benefit of international
organizations in which it or
3. Da Afghanistan Bank may participate in international organizations that pursue financial and economic stability, through international monetary cooperation.
Wherever used in this Law, the following terms shall have the following meanings:
"bank" means a legal person engaging in the business and receiving of money deposits or other repayable funds from the public for the purpose of making credits or investments for his own account;
"check cashing" means receiving compensation for taking payment instruments or stored value, other than traveler's checks, in exchange for money, payment instruments, or stored value delivered to the person delivering the payment instrument or stored value;
commodity means a currency, metal, agricultural product, basket of commodities, and any other asset declared to be a commodity by the relevant legislation;
"currency exchange" means receipt of revenues from the exchange of money of one country for money of another country;
"debt security" means any negotiable instrument of indebtedness and any other instrument equivalent to such instrument of indebtedness, and any negotiable instrument which gives the right to receive another negotiable debt security through subscription or exchange[?]. Debt security may also be in book-entry form;
derivative means any negotiable forward contract, futures contract, option contract and other contractual instrument that entitles its holder:
a. to
acquire a security or a basket of securities or commodities; or
b. to receive a cash amount determined by reference to a future price or value of a security or a commodity, or by reference to a future price or value of a basket of securities or commodities;
c. to receive a cash amount determined by reference to an interest rate or a foreign exchange rate or an index of prices or values of interest rates, foreign exchange rates, securities or commodities;
financial market means any financial market [or exchange] where securities are traded and the activities connected with such market or exchange;
foreign currency [ and foreign exchange] mean:
a. the
money of a country other than
b. a monetary unit of account which is established by an intergovernmental organization or by agreement between two or more countries,
c. gold if sold as bullion or specie, not including a significant increment of workmanship, or
banknote includes any instrument intended to
be used as money or as the equivalent of money, issued under lawful authority
in
foreign exchange dealer means any person who engages in the business of buying and selling foreign currencies, forward exchange contracts, options, swaps or other derivative contracts involving a foreign currency transaction.
forward contract means a contract for future receipt of a debt security or a commodity with a specified price;
futures contract means a forward contract with standardized terms and conditions that is traded in a financial market;
investment fund means a company receiving funds from the public for investment in securities;
International Accounting Standards means the most recent international accounting standards issued by the International Accounting Standards Committee;
"monetary value" means a medium of exchange, whether /or not redeemable in money;
"money" means a medium of exchange that is
authorized and adopted by
"current"
means lawfully current money in
money service means any service relating to money including safekeeping, money transmission, check cashing, or currency exchange;
money service provider means any person who engages in the business of providing a money service;
"money transmission" means selling or issuing payment instruments, stored value, or receiving money or monetary value for transmission; the term does not include the provision solely of physical delivery, online or telecommunications services, or network access;
negotiable with respect to a financial instrument means that the title to that instrument may be effectively transferred by delivery of the instrument or by signed endorsement written on the instrument or by entry in a register of owners of such instrument;
option contract means a contract that grants the holder of the contract the right [but not the obligation] to buy (call) or to sell (put) a stated quantity of a security or commodity against payment of an agreed price on or before a specified expiration date;
"payment instrument" means a check, draft, money order, traveler's check, or other instrument for the transmission or payment of money or monetary value, whether or not negotiable; a credit card voucher, letter of credit, or instrument that is redeemable by the issuer in goods or services shall be an exception from this rule.
payment system means any system or other arrangement (including communication networks) between three or more money service providers for the processing of payments , the clearing or settlement of payment transactions, and for the exchange of payments against other payments, financial obligations or securities, in any currency;
payment system operator means any person who operates a payment system;
person means any natural person, any legal person,
"record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form;
security means a negotiable financial instrument (whether in the form of a certificate or in book-entry form) of one of the following categories:
a. shares, or certificates or receipts in respect of shares;
b. debt securities, whether or not convertible into shares;
c. derivatives;
d. shares or participation units in investment funds;
e. any other negotiable financial instrument declared to be a security by regulation of Da Afghanistan Bank;
securities service means any of the services listed in Article 94
securities service provider means any person who provides a securities service;
securities transfer system means any system or other arrangement (including communication networks) between three or more securities service providers for the transfer of securities, for the clearing or settlement of transactions in securities, against payments [in cash] and other securities,
securities transfer system operator means any person who operates a securities transfer system;
Commission for settling financial disputes means the Commission for settling financial disputes mentioned in Article 108.
share means any share of capital stock or other equity security issued by a corporation;
"State agency"
means any administrative or political subdivision ,agency
or any enterprise owned or [effectively] controlled by
"stored value" means monetary value that is evidenced by an electronic record.
Da Afghanistan Bank shall have a Supreme Council as its highest policy and decision making body, a Governor charged with the management of Da Afghanistan Bank, a Comptroller General responsible for the internal control and audit of the operations of Da Afghanistan Bank, and other related staff.
1. The Supreme Council of Da Afghanistan Bank shall be composed of seven members, as follows:
a) Governor Chairman of the Supreme Council
b) First Deputy Governor Vice Chairman of the Supreme Council
c) Five other members.
All members of the Supreme Council shall be appointed by the
President of Afghanistan with the advice and consent of the parliament
of
2. The term of each member of the Supreme Council shall be five years, except that, , the completion dates of the initial terms of members appointed under this law shall be spread evenly over a five year period. Supreme Council members shall be eligible for reappointment, unless a ground for removal under Article 12 would apply to them.
1. The Supreme Council shall be charged with the adoption of the principal policies of Da Afghanistan Bank and the supervision of the administration and operations of Da Afghanistan Bank.
2. In carrying out its functions, the Supreme Council must periodically assess the monetary and economic situation. To that end, the Executive Board shall report, not less than once every calendar quarter, to the Supreme Council on the administration and operations of Da Afghanistan Bank, on the conduct of its monetary and regulatory policies (including domestic price stability policy), on the soundness of the financial system including in particular the banking and payment systems of Afghanistan, on the state of the money, capital and foreign exchange markets, and the events and conditions that have or must be expected to have a significant effect on the administration or operations, the conduct of its policies, the financial system of Da Afghanistan Bank or the before mentioned markets.
The Comptroller General shall present to the Supreme Council such reports and studies as the Supreme Council shall request for the supervision of the administration or operations of Da Afghanistan Bank.
The Governor shall ensure that the Supreme Council shall promptly upon his request receive all such information as the Supreme Council shall require for the supervision of the administration or operations of Da Afghanistan Bank.
Article 9. Powers of the Supreme Council
The Supreme Council shall have the following powers:
a. to formulate and adopt the monetary policy of Afghanistan, including the limits of open market operations by Da Afghanistan Bank, the interest rates for discounts and loans by Da Afghanistan Bank, and the types and levels of reserves that banks are required to maintain [with Da Afghanistan Bank];
b. to formulate and adopt the foreign exchange policy;
c. to adopt all regulations, guidelines and instructions of general application that are to be presented by Da Afghanistan Bank pursuant to this Law or other legislation in force;
d. to approve all reports and recommendations that Da Afghanistan Bank is to make to the government or the
parliament of
e. to decide on the participation by Da Afghanistan Bank in international organizations;
f. to determine the face value and design of banknotes and coins, and the conditions of any currency recall;
g. to decide on debt securities of Da Afghanistan Bank and the terms and conditions of such securities;
h. to determine the categories of assets that shall be suitable for investment of the foreign exchange reserves and other resources of Da Afghanistan Bank;
i. to approve the discounting by Da Afghanistan Bank of instruments having a maturity of more than three months from the date of their acquisition by Da Afghanistan Bank;
j. to approve, with the consent of [at least] three-fifths of the members of the Supreme Council [present], each loan and each guarantee or other contingent commitment of Da Afghanistan Bank to [or for the benefit of] a bank pursuant to Article 88;
k. to adopt the procedures of Da Afghanistan Bank and the regulations applicable to the administration and operations of Da Afghanistan Bank;
l. to determine the organization of Da Afghanistan Bank;
m. to approve the appointment of the Deputy Governors (other than the First Deputy Governor) and the Comptroller General of Da Afghanistan Bank, and to approve subsequent service at another financial institution by the Governor and the First Deputy Governor;
n. to establish and close subsidiaries, branch offices and agencies of Da Afghanistan Bank;
o. to decide on the purchase, construction, utilization and sale of buildings and other property by Da Afghanistan Bank;
p. to determine the budget of Da Afghanistan Bank and[ in general] the terms and conditions of employment, work , pensions of the employees, and agents of Da Afghanistan Bank other than the members of the Supreme Council;
q. to propose increases in the authorized capital of Da Afghanistan Bank
r. to determine the accounting procedures and the financial risk management policies of Da Afghanistan Bank;
s. to adopt the annual reports and financial statements of Da Afghanistan Bank;
t. to decide on the depreciation of assets and the rate of depreciation of assets of Da Afghanistan Bank, to establish special reserves on the books of Da Afghanistan Bank, to determine the net income of Da Afghanistan Bank, and to decide what amount of such net income shall be transferred to any reserve; and
u. such other powers as shall be granted to the Supreme Council by this law.
Article 10. Membership conditions of the Supreme Council
Any person appointed to serve as a member of the Supreme Council shall fulfil the following conditions:
a.
he shall be a citizen of
b. he shall be a person of recognized integrity;
c. He shall have a degree of higher education or extensive work experience preferably in economics, banking or law;
d. He has not been disqualified from serving pursuant to Article 12;
e. he is not an employee of Da Afghanistan Bank other than the Governor or the First Deputy Governor;
f. He shall not be a member of the board of supervisors or another financial institution in any form.
g. He shall not be under the supervision of Da Afghanistan Bank by law.
g.
He shall not be a Minister, Deputy Minister, Member of Parliament, or other
high
ranking official of
The Governor, the First Deputy Governor and the other members of the Supreme Council shall be appointed by a decree of the President of Afghanistan; once such members have been appointed or reappointed to a term, their compensation and other emoluments may not be reduced during the term of appointment.
1. The Governor, the First Deputy Governor, and any other member of the Supreme Council, of Da Afghanistan Bank shall be suspended or removed from office by the President of Afghanistan, if he:
a. becomes ineligible to serve on the Supreme Council pursuant to Article 10;
b. has been convicted of an offense for which he was or could have been sentenced to imprisonment, unless such conviction was motivated by his religious or political views or activities;
c. has been declared bankrupt or unable to pay his debts by a court decision;
d. has served during the immediately preceding five years as officer of a company that has been subject to conservatorship or receivership;
e. has, on grounds of personal misconduct, been disqualified or suspended by a competent authority from practicing a profession;
f. has been unable to perform the functions of his office because of an infirmity of body or mind that has lasted for more than six months;
g. has been absent without good cause from two or more successive meetings of the Supreme Council of Da Afghanistan Bank held during the most recent period of twelve months; or
h. has engaged in significant violations of the law or any duty imposed by the law, or has engaged in political activities, or has engaged in serious misconduct in the office, substantially prejudicing the interests of Da Afghanistan Bank.
2. No member of the Supreme Council shall be suspended or removed from office on any ground other than those provided for in paragraph 1.
3. No member of the Supreme Council shall be suspended or removed from office before a hearing has been held by the President of Afghanistan where such member or his legal representative has been afforded a reasonable opportunity to present his views.
The Governor and the First Deputy of the supreme council may resign from office on giving not less than three months' notice in writing to the President of Afghanistan, or such shorter period of time as the President may agree. Any other member of the Supreme Council may resign on giving not less than one month's notice in writing to the President of Afghanistan, or such shorter period of time as the President may agree.
Any vacancy on the Supreme Council shall be filled by the appointment of a new member of the Supreme Council in accordance with Article 9 to serve the remaining period of the term of the Supreme Council member replaced.
1. The Governor, or, in his absence or inability to vote, the First Deputy Governor, must chair the meetings of the Supreme Council.
2. The Supreme Council shall meet as often as the business of Da Afghanistan Bank may require but not less frequently than once each calendar quarter.
3. Normally, meetings of the Supreme Council are convened by the Governor. Meetings of the Supreme Council may also be convened at the written request of any three members of the Supreme Council .
4. The meetings of the Supreme Council shall be convened by effectively communicating the time, venue and agenda of the meeting to all members of the Supreme Council at least ten working days before the date set for the meeting.
5. Each member of the Supreme Council shall have one vote. A quorum at any meeting of the Supreme Council shall consist of the presence of two thirds or more of the membership of the Supreme Council, including the presence of the Governor or the First Deputy Governor.
6. Except as otherwise provided by this Law, decisions of the Supreme Council shall be adopted by a simple majority of the votes cast by the members of the Supreme Council who are present at the meeting. Only members of the Supreme Council who are present in person shall have the right to vote; provided, however, that the relevant procedures of Da Afghanistan Bank may permit meetings of the Supreme Council through voting by teleconferencing or in exceptional circumstances by tested telex or other tested electronic means of communication. In the event of a tie, the Chairman of the meeting shall have the casting vote.
7. Subject to the quorum requirement of paragraph 5, no decisions of the Supreme Council shall be invalidated merely by reason of the existence of a vacancy or vacancies on the Supreme Council.
8. All acts done by a person acting in good faith as Chairman or other member of the Supreme Council shall be valid notwithstanding that some defect in his appointment, eligibility, or qualification be afterwards discovered.
1. The proceedings of the meetings of the Supreme Council shall be confidential. The Supreme Council may decide to make the outcome of all or part of its deliberations public.
2. There shall be minutes of each Supreme Council meeting signed by the person chairing the meeting, and by the Secretary of the Supreme Council.
3. The Secretary of the Supreme Council shall be appointed by the Governor from among the senior staff of Da Afghanistan Bank; he shall not be a member of the Supreme Council.
4. Decisions of the Supreme Council shall be recorded and issued to the relevant bodies over the signature of the Chairman presiding at the Supreme Council meeting that adopted the decision.
1. Each member of the Supreme Council and the Executive Board, Deputy Governor and officer of Da Afghanistan Bank shall, upon his appointment and annually thereafter, declare to the Supreme Council of Da Afghanistan Bank in full the direct and indirect business interests that he or members of his household may have. Such disclosures shall comply with regulations adopted by the Supreme Council of Da Afghanistan Bank.
2. No act or proceeding of the Supreme Council or of Da Afghanistan Bank shall be questioned as to its validity on the ground of noncompliance with Article 24 or with Section 1 of this Article.
1. the Executive Board, shall be responsible for all matters concerning the administration and operations of Da Afghanistan Bank that are not specifically assigned by this Law to the Supreme Council or to the Comptroller General. The members of the executive board shall each perform the duties of their office with due diligence and efficiency.
2. Upon taking office, each member of the Executive Board shall take an oath that he shall protect the confidentiality of the administration and operations of Da Afghanistan Bank and perform the duties of his office with due diligence and efficiency.
3. If the Governor is absent or otherwise unable to act, the First Deputy Governor shall carry out the functions of the Governor and exercise all the powers of the Governor.
4. The Governor shall be responsible to the Supreme Council for the execution of the decisions of the Supreme Council and for the direction and control of the administration and operations of Da Afghanistan Bank.
1. All powers that are not specifically reserved for the Supreme Council or the Comptroller General shall be vested in the Governor. Within the limitation of his powers, the Governor shall have the authority to take all actions required for the administration or operations of Da Afghanistan Bank.
2. The Governor, with the approval of the Supreme Council, may delegate some or all of his powers to one or more other members of the Executive Board or to one or more eligible employees or agents of Da Afghanistan Bank. Da Afghanistan Bank shall maintain an up-to-date list of its authorized signatories together with a description of their authority and make the list available to the public upon request.
1. The Executive Board of Da Afghanistan Bank shall consist of the Governor, the First Deputy Governor, the Comptroller General, and such Deputy Governors as the Supreme Council shall appoint from candidates proposed for appointment by the Governor. Deputy Governors, other than the First Deputy Governor shall be appointed upon the approval of the Supreme Council.
2. any person who serve as Governor, Deputy Governor or Comptroller General of Da Afghanistan Bank shall:
a.
be a citizen of
b. enjoy recognized integrity;
c. have a degree of higher education or extensive work experience preferably in economics, banking or law;
d. not be disqualified from serving pursuant to paragraph 3;
e. not be an officer or a full time or part time employee, with or without remuneration, of a bank or other financial institution submitted by law to oversight by Da Afghanistan Bank;
f. while he is a Minister, Deputy Minister, member of parliament or other high ranking official of Afghanistan.
3. A Deputy Governor other than the First Deputy Governor or a Comptroller General of Da Afghanistan Bank shall be suspended or removed from office by the Supreme Council if he:
a. becomes ineligible to serve pursuant to paragraph 2;
b. has been convicted of an offense to the punishment of which is imprisonment, unless such conviction was motivated by his religious or political views or activities;
c. has been declared bankrupt or unable to pay his debts by a court decision;
d. has served during the immediately preceding five years as officer of a company that has been subject to conservatorship or receivership;
e. has, on grounds of personal misconduct, been disqualified or suspended by a competent authority from practicing a profession;
f. has been unable to perform the functions of his office because of an infirmity of body or mind that has lasted for more than six months;
g. has engaged in significant violations of the law or in negligence from any duty imposed by the law, or has engaged in serious misconduct in the office, substantially prejudicing the interests of Da Afghanistan Bank.
4. No such Deputy Governor or Comptroller General of Da Afghanistan Bank shall be suspended or removed from office on another ground.
5. No Deputy Governor or Comptroller General of Da Afghanistan Bank shall be suspended or removed from office before a hearing has been held by the President of Afghanistan where such Deputy Governor or Comptroller General or his legal representative has been afforded a reasonable opportunity to present his views.
6. Each Deputy Governor and the Comptroller General of Da Afghanistan Bank may resign from office on giving notice in writing to the Governor of not less than three months or such shorter period of time as the Governor may agree.
1. A Comptroller General of Da Afghanistan Bank shall be appointed for a term of five years by the Supreme Council, from candidates who are professionally qualified accountants and who are not ineligible to serve as Comptroller General pursuant to Article 20, paragraph 2. He shall be eligible for reappointment.
2. The Comptroller General shall head the Audit Department of Da Afghanistan Bank.
3. The staff of the Audit Department shall be appointed and dismissed by the Governor with the consent of the Comptroller General.
4The Comptroller General and the Audit Department shall have the duty:
a. to establish and maintain appropriate risk management procedures and instruments for Da Afghanistan Bank and to supervise their use;
b. to perform periodic audits of the administration and operations of Da Afghanistan Bank, in order to supervise observance of the laws and regulations that apply to Da Afghanistan Bank;
c. to audit, and to submit to the Supreme Council reports and recommendations on, the accounts and records as well as the budgetary and accounting procedures and controls of Da Afghanistan Bank;
d. to audit regularly the financial statements and related documents of Da Afghanistan Bank and, if these have been properly prepared, to issue certifications to that effect;
e. to monitor the proper implementation of the decisions of the Supreme Council and the Governor; and
f. to carry out any other assignment given to the Comptroller General by the Supreme Council or the Governor.
1. During their employment by Da Afghanistan Bank, the authoities and staff of Da Afghanistan Bank shall not be employed by, or receive credit from, any bank or other financial institution submitted to the oversight by Da Afghanistan Bank, unless Da Afghanistan Bank shall otherwise decide.
2. The Supreme Council shall adopt a regulation in order to better regulate the woking covering the conditions of employment at Da Afghanistan Bank.
1. The Executive Board shall appoint and terminate the appointment of the employees, [and] agents [and correspondents] of Da Afghanistan Bank, in accordance with the relevant legislation.
2. No salary, fee, wage, or other remuneration or allowance paid by Da Afghanistan Bank shall be computed by reference to net profit or other revenues of Da Afghanistan Bank.
Whenever any matter related to an interest of a member requiring disclosure under Article 17 comes up for discussion in the Supreme Council or the Executive Board, the member concerned shall disclose his interest promptly at the beginning of the discussion when the relevant facts come to his attention and shall not participate in the discussion and decision on such matter, and his presence shall not be counted for the purpose of constituting a quorum.
1. While holding office, the Governor, the Deputy Governors and the Comptroller General of Da Afghanistan Bank shall devote the whole of their professional services to Da Afghanistan Bank, and none of them shall occupy any other office or employment, whether remunerated or not, except as nominee of Da Afghanistan Bank.
2. No former Governor, Deputy Governor or Comptroller General of Da Afghanistan Bank shall serve another financial institution during a period of one year immediately following their departure from Da Afghanistan Bank, without the prior written approval of the Supreme Council.
3. No member of the staff of Da Afghanistan Bank shall simultaneously have other employment, whether gainful or not, without the prior written approval of Da Afghanistan Bank.
4. No Governor, Deputy Governor, officer or member of the staff of Da Afghanistan Bank shall accept any gift or credit for himself, or on behalf of any person with whom he has family, business or financial connections, if the acceptance thereof would result, in diminishing his impartial devotion to his duties to Da Afghanistan Bank.
No person who serves or has served as a member of the Supreme Council, or as a Governor, officer or other member of the staff, or as an agent [or correspondent], of Da Afghanistan Bank shall:
a. permit access to, disclose or publicize nonpublic material information which he has obtained in the performance of his official duties except when lawfully required to do so by any court of law or pursuant to any law or pursuant to any cooperative agreement with a foreign regulator; or
b. use such information, or allow such information to be used, for personal gain.
1. The authorized capital of Da Afghanistan Bank shall be Eight Billion Afghanis, or such an amount as shall be recommended by an independent inquiry into the assets and the liabilities of Da Afghanistan Bank pursuant to Article( 130 ), or such higher amount as shall result from allocations from net profits pursuant to Article 29.
2. The capital of Da Afghanistan Bank shall be held solely by the State, and shall not be transferable or subject to encumbrance.
For each financial year, the net profit or the net loss of Da Afghanistan Bank shall be calculated in accordance with International Accounting Standards as the sum of net operating revenues or losses (including realized gains and losses) and net unrealized valuation gains or losses, and after making provision:
a. for bad and doubtful debts, depreciation of assets, and contributions to the staff retirement fund; and
b. subject to the approval of the Minister of Finance, for such other purposes as Da Afghanistan Bank may deem necessary.
1. If Da Afghanistan Bank has a net profit for any financial year, the net profit shall be allocated and used in the following order of priority:
a. an allocation from net profit shall be made to the capital account of Da Afghanistan Bank in such amount as shall be required to increase the authorized capital of Da Afghanistan Bank to a level equivalent to five percent of the aggregate amount of monetary liabilities shown on the balance sheet of Da Afghanistan Bank for the end of that financial year;
b. an allocation from net profit shall be made to redeem the securities issued by the State to Da Afghanistan Bank pursuant to Article 31 and held by Da Afghanistan Bank;
c. an allocation from net profit shall be made to the General Reserve maintained by Da Afghanistan Bank in such amount as shall be required to increase the amount of the General Reserve to a level equivalent to the amount of the authorized capital of Da Afghanistan Bank; the General Reserve may only be used to offset losses of Da Afghanistan Bank;
d. an allocation from net profit shall be made to any other reserve for specific purposes established by Da Afghanistan Bank subject to the approval of the Minister of Finance; and
e. any residual net profit remaining after the preceding allocations shall be allocated in accordance with the following: the preceding allocations from net profit shall be calculated as if made entirely from net operating revenues, except that, if no operating revenues are included in net profit or after the preceding allocations have exhausted net operating revenues included in net profit, such allocations shall be calculated as if made from net unrealized valuation gains; residual net operating revenues if any shall be distributed to the State within four months after the end of the financial year, and residual net unrealized valuation gains if any shall be allocated to a Valuation Reserve Account maintained on the balance sheet of Da Afghanistan Bank.
2. For the purposes of this Law, the aggregate amount of the monetary liabilities of Da Afghanistan Bank shall be at any time the sum of:
(A) all outstanding banknotes, coins and debt securities issued by Da Afghanistan Bank; and
(B) the credit balances of all accounts maintained on the books of Da Afghanistan Bank by account holders.
If Da Afghanistan Bank incurs a net loss for any financial year, the net loss shall be allocated as follows:
a. if the net loss is composed of net operating losses and net unrealized valuation losses, the amount of net operating losses shall be charged to the general reserve or to capital in that order, and the amount of net unrealized valuation losses shall be allocated to the Valuation Reserve Account or, to the extent that the balance of the Valuation Reserve Account would be negative as a result of such allocation, to the general reserve or to capital in that order;
b. if the net loss is the sum of net operating revenues and greater net unrealized valuation losses, the net loss shall be allocated to the Valuation Reserve Account or, to the extent that the balance of the Valuation Reserve Account would be negative as a result of such allocation, to the general reserve or to capital in that order; or
c if the net loss is the sum of a net operating loss and smaller net unrealized valuation gains, the net loss shall be charged to the general reserve or to capital in that order.
1. This article applies whenever for Da Afghanistan Bank:
a. on one of its monthly pro forma balance sheets prepared pursuant to Article 74 the value of its assets falls below the sum of its liabilities and unimpaired authorized capital, or
b. its net profit for any financial year is insufficient to increase its authorized capital to the level prescribed in this act.
2. If the circumstances outlined in paragraph 1 occur, and:
a. if the last official measure of the annual inflation rate is within the band of 3% to 20% , the Minister of Finance shall, within one month after submission of that balance sheet to him, deliver to Da Afghanistan Bank marketable debt securities, denominated and payable in afghanis, issued by the State and bearing interest at market rates, in such amount or amounts as shall be necessary to remedy this deficit. This inflation band shall be re-evaluated every three years.
b. if the last official measure of the annual inflation rate is not within the band of 3% to 20% , the Minister of Finance shall first seek an appropriation under the governments budget and appropriation process. If the appropriation is not approved, then the Minister of Finance shall, notwithstanding public expenditure legislation to the contrary, within one month after submission of that balance sheet to him, deliver to Da Afghanistan Bank marketable debt securities, denominated and payable in afghanis, issued by the State and bearing interest at market rates, in such amount or amounts as shall be necessary to remedy this deficit.
3. If the circumstances outlined in paragraph 1 occur, the Parliament may convene an inquiry commission with national and international experts to investigate the causes for the condition, and if appropriate, make recommendations. The inquiry commission shall receive the full cooperation of Da Afghanistan Bank. Failure to provide full cooperation, and the provisions of Article 12 paragraph 1 subparagraph (h) shall apply.
No transfer, redemption or payment pursuant to Article 29 shall be made if, as a result thereof, the assets of Da Afghanistan Bank would be less than the sum of its liabilities and unimpaired capital and reserves.
Chapter IV CURRENCY
The currency of
1. Da
Afghanistan Bank shall have the exclusive right to issue banknotes and coins
intended for circulation in
2. Banknotes issued under this Article shall be a first charge on the assets of Da Afghanistan Bank.
3. Da
Afghanistan Bank shall make adequate arrangements for the issue of its
banknotes and coins at its head office and at its branch
offices and agencies
in
4.
Banknotes and coins
issued by Da Afghanistan Bank and intended for
circulation in
1. A tender of
payment of money
is a legal tender if made in banknotes or coins. Subject to any provisions in
this Chapter, banknotes and coins
shall be accepted, for the amount of their
denomination in the currency of
2. Da Afghanistan Bank may limit the amount that may be paid by banknotes and coins and restrict the denomination of banknotes and coins in which a payment can be made in specified amounts.
3. In this Article, any reference to banknotes or coins is to banknotes or coins intended for circulation in Afghanistan, issued pursuant to this Chapter by Da Afghanistan Bank, that have not been demonetized.
1. any
reference to banknotes or coins, is to banknotes or coins intended for
circulation in
2. Da Afghanistan Bank shall determine by regulation the denomination, measures, form, material, content, weights, designs, and other features of banknotes and coins. Banknotes shall bear the signature of the Governor of Da Afghanistan Bank and the Minister of Finance.
Da Afghanistan Bank shall arrange for the printing of bank notes and the minting of coins, for the security and safekeeping of unissued banknotes and coins, and for the custody and destruction, as necessary, of plates, dies, and retired banknotes and coins.
Upon request, Da Afghanistan Bank shall exchange without charge or commission banknotes or coins with other banknotes or coins in equivalent amounts.
1. unfit banknotes or coins are the banknotes and coins which are mutilated, defaced or coins that are bent, mutilated or defaced and that has been reduced in weight otherwise than by abrasion through ordinary use.
2. An unfit banknote or coin shall be demonetized. Subject to paragraph 2, Da Afghanistan Bank shall withdraw, destroy, and replace with banknotes or coins of an equivalent amount any unfit banknotes or coins presented to it.
3. Da Afghanistan Bank may decline to replace an unfit banknote or coin if its designs are illegible, misshaped or perforated, or if more than forty percent of its surface has been lost. Such banknote or coin shall be withdrawn and destroyed without indemnity to the owner, except that, in special cases, Da Afghanistan Bank may grant compensation in whole or in part.
4. a Afghanistan Bank may confiscate without compensation any banknotes that have been altered in their external appearance, including in particular banknotes that have been written on, painted on, overprinted, stamped or perforated, or to which adhesive matter has been applied.
5. Every officer employed in the collection of
revenue in
Da Afghanistan Bank shall directly administer the
currency reserve inventory, make issue plans, and ensure a regular supply of
banknotes
and coins as needed to meet the currency requirements of the economy
of
The aggregate amount of circulating banknotes and coins shall be noted in the accounts of Da Afghanistan Bank as a liability of Da Afghanistan Bank; such liability shall not include banknotes and coins in the currency reserve inventory.
1. Da Afghanistan Bank may decide to call in and withdraw from circulation banknotes or coins, by issuing in exchange therefor other banknotes or coins in equivalent amounts. The decision shall be issued in the form of a procedure of Da Afghanistan Bank. It shall specify the period during which the banknotes or coins must be presented for exchange, identify the locations and times where they are to be so presented, provide for all matters relating to the exchange procedure. The procedure may set requirements and conditions as to proper identification of persons presenting banknotes or coins for exchange and for documentation of exchange transactions under this paragraph. It may provide for the determination and treatment of any counterfeit money presented for exchange.
2. At the end of the exchange period referred to in paragraph 1, or at any other time specified by the procedure, banknotes and coins so called in for exchange shall be demonetized and cease to be legal tender.
3. A decision
under paragraph 1
may, be for the implementation of a Law providing for the naming or
re-denomination of the currency in
1. All public budgets, financial records and accounts, required by any Law of
Afghanistan, and established or maintained in Afghanistan, shall be or be assessed in the currency of Afghanistan Any reference to money in any indictment or other legal proceedings other than for the enforcement of a foreign currency obligation, shall be stated in the currency of Afghanistan.
2. Compulsory payments shall be assessed and required to be paid in the afghani. compulsory payment means any payment made to or by a public authority other than under a contract or any other voluntary transaction. It includes the payment of taxes (either direct or indirect), custom dues, excise, levies, fees, charges and penalties, as well as any payment to public utilities, payment according to a court order, or payment under a duty prescribed by law.
1. Any sum mentioned in
legislation, unless it is otherwise expressed, shall be construed as being in
the currency of
2. Where any law
of
3. For the purposes of the administration, application and operation of the laws relating to the customs, tax obligations, or any other payments, Da Afghanistan Bank may make regulations specifying, or specifying the means or method of ascertaining, determining or calculating, the equivalent afghani value of currencies of countries other than Afghanistan for a day or any other period or generally.
4. In case of a decision with regard to currency re-denomination in accordance with this law, all records, accounts, obligations, debts, price quotations, and references in other legislation, will read to be re-denominated according to the exchange rate of the re-denomination.
Unless Article 46 applies, every
contract, sale, payment, bill, note, instrument and security for money and
every transaction, dealing,
matter and thing relating to money or involving the
payment of or the liability to pay money shall be made, executed, entered into,
done or carried out in the currency of
1. Parties to a contract or any other voluntary transaction, including a party to a bill, note, instrument or security for money, may denominate a payment obligation in any currency agreed upon.
2. An agreement under this Article may be express or implied from surrounding circumstances including course of dealing, usage of trade, or course of performance.
1. A foreign currency obligation may be enforced according to its terms. Subject to paragraph 3 and 4, where a legal person obtains an order to enforce an obligation in a foreign currency, the order shall require payment of an amount in the currency of Afghanistan sufficient to purchase the amount of the obligation in the foreign currency at a bank in Afghanistan at the close of business on the first day on which the bank quotes an afghani rate for purchase of the foreign currency prior to the day payment of the obligation is received by the creditor.
2. Where more than one payment is made under an order referred to in paragraph 1, the rate of conversion shall be the rate determined as provided in paragraph 1 for each payment.
3. Subject to paragraph 4, where, in a proceeding to enforce an obligation in a foreign currency, the court is satisfied that conversion of the amount of the obligation to the currency of Afghanistan as provided in paragraph 1 would be inequitable to both parties, the order may require payment of an amount in the currency of Afghanistan sufficient to purchase the amount of the obligation in the foreign currency at a bank in Afghanistan on such other day as the court considers equitable in the circumstances. the court will order a conversion to be made at such rate as to make the creditor whole and avoid rewarding a debtor who has delayed in carrying out the obligation.
4. Where an obligation
enforceable in
"counterfeit money" includes
a. a false coin or false paper money that resembles or taken for a current coin or current paper money,
b. a forged banknote or forged blank banknote, whether complete or incomplete,
c. a genuine coin or genuine paper money that is prepared or altered to resemble or pass for a current coin or current paper money of a higher denomination
d. a current coin from which the milling is removed by filing or cutting the edges and on which new milling is made to restore its appearance,
e. a coin cased with gold, silver or nickel, as the case may be, that is intended to resemble or pass for a current gold, silver or nickel coin, and
f a coin or a piece of metal or mixed metals that is washed or colored by any means with a wash or material capable of producing the appearance of gold, silver or nickel and that is intended to resemble or pass for a current gold, silver or nickel coin;
"counterfeit token of value" means a counterfeit excise stamp, postage stamp or other evidence of value, by whatever technical, trivial or deceptive designation it may be described, and includes genuine coin or paper money that has no value as money;
"utter" includes sell, pay, and tender .
Every one who makes or begins to make counterfeit money is guilty of an [indictable] offence and liable to for a long term imprisonment.
1. Every one who, without lawful justification or excuse,
a. buys, receives or offers to buy or receive,
b. has in his custody or possession, or
c.
introduces into
counterfeit money is guilty of an [indictable] offence and liable to imprisonment for a term not exceeding fourteen years.
2. Every one who, without lawful justification or excuse, the proof of which lies on him, has in his custody or possession
a. gold or silver filings or clippings,
b. gold or silver bullion, or
c. gold or silver in dust, solution or otherwise,
produced or obtained by impairing, diminishing or lightening a current gold or silver coin, knowing that it has been so produced or obtained, is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years.
1. No person shall,
except in
accordance with a license granted by Da Afghanistan
Bank, melt down, break up or use otherwise than as currency any coin that is
current and legal tender in
2. Every person who contravenes paragraph 1 or any condition attached to a license referred to in that paragraph is liable on summary conviction to a fine not exceeding 25,000 afghanis or to imprisonment for a term not exceeding twelve months or to both, and, in addition to any fine or imprisonment imposed, the court may order that the articles by means of or in relation to which the offence was committed be forfeited to the State.
1. Every one who, without lawful justification or excuse, the proof of which lies on him,
a. utters or offers to utter counterfeit money or uses counterfeit money as if it were genuine, or
b. exports,
sends or takes counterfeit money out of
is guilty of an [indictable] offence and liable to a long term imprisonment .
2. Every one who, with intent to defraud, knowingly utters
a. a coin that is not current, or
b. a piece of metal or mixed metals that resembles in size, figure or color a current coin for which it is uttered,
is guilty of an indictable offence and liable to imprisonment for a term not exceeding [two years].
Every one who without lawful excuse, the proof of which lies on him,
a. manufactures, produces or sells, or
b. has in his possession
anything that is intended to be fraudulently used in substitution for a coin or token of value that any coin or token-operated device is designed to receive is guilty of an offence [punishable on summary conviction] and liable to a fine not exceeding 12,000 afghanis or to imprisonment for a term not exceeding [six months] or to both.
1. Every one who
a. impairs, diminishes or lightens a current gold or silver coin with intent that it should pass for a current gold or silver coin, or
b. knowingly utters a coin described in sub-paragraph a,
is guilty of an [indictable] offence and liable to imprisonment for a long term .
2. Every one who
a. defaces a current coin,
b. utters a current coin that has been defaced,
c. without the authority of Da Afghanistan Bank defaces any banknote by printing, stamping or by any like means impressing on it any words, letters or figures, or
d. utters a current banknote that has been defaced as described in sub-paragraph c,
is guilty of an offence punishable on summary conviction and liable to a fine not exceeding 5000 afghanis or to imprisonment for a term not exceeding [six months] or to both.
1. No person shall make, publish, print, execute, issue, distribute or circulate, including by electronic or computer-assisted means, anything in the likeness of
a. a current banknote, or
b. a debt security or a security of a government or bank.
2. &nbs