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An Afghan exodus, of bank notes

A blizzard of bank notes is flying out of Afghanistan — often in full view of customs officers at the Kabul airport — as part of a cash exodus that is confounding US officials and raising concerns about the money’s origin.

world Updated: Feb 27, 2010 01:33 IST

A blizzard of bank notes is flying out of Afghanistan — often in full view of customs officers at the Kabul airport — as part of a cash exodus that is confounding U.S. officials and raising concerns about the money’s origin.

The cash, estimated to total well over $1 billion a year, flows mostly to the Persian Gulf emirate of Dubai, where many wealthy Afghans now park their families and funds, according to U.S. and Afghan officials. So long as departing cash is declared at the airport here, its transfer is legal.

But at a time when the United States and its allies are spending billions of dollars to prop up the fragile government of President Hamid Karzai, the volume of the outflow has stirred concerns that funds have been diverted from aid. The US Drug Enforcement Administration, for its part, is trying to figure out whether some of the money comes from Afghanistan’s thriving opium trade.

And officials in Pakistan think that at least some of the cash leaving Kabul has been smuggled overland from Pakistan. “All this money magically appears from nowhere,” said a U.S. official who monitors Afghanistan’s growing role as a hub for cash transfers to Dubai, which has six flights a day to and from Kabul.

Meanwhile, US is stepping up efforts to stop money flow in the other direction — into Afghanistan and Pakistan in support of Al Qaeda and the Taliban.

Cash declaration forms filed at Kabul International Airport and reviewed by The Washington Post show that Afghan passengers took more than $180 million to Dubai during a two-month period starting in July.

If that rate held for the entire year, the amount of cash that left Afghanistan in 2009 would have far exceeded the country’s annual tax and other domestic revenue of about $875 million.

Asked to identify the “source of funds” in forms issued by the Afghan central bank, cash couriers frequently put down the name of the same Kabul hawala, an outfit called New Ansari Exchange. Early last month, Afghan police and intelligence officers raided New Ansari’s office in Kabul’s bazaar district. New Ansari Exchange, which is affiliated with a licensed Afghan bank, closed for a day or so but was soon up and running again.

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