Afghanistan closes Iran-linked bank due to ‘grave violations’

Kabul has revoked the license of the Iran-linked Arian Bank due to “grave violations,” a spokesman for Afghanistan’s Central Bank told Arab News on Monday. (Shutterstock)
Updated 21 May 2019

Afghanistan closes Iran-linked bank due to ‘grave violations’

  • Move follows recent meeting to review activities of foreign financial institutions

KABUL: Kabul has revoked the license of the Iran-linked Arian Bank due to “grave violations,” a spokesman for Afghanistan’s Central Bank told Arab News on Monday.

The move was not linked to US sanctions on Iran, Aimal Ashoor added. The Central Bank convened a meeting recently to review the activities of foreign banks, he said. 

The cancelation of Arian Bank’s operating license follows that of Pakistan-based Habib Bank, he added.

“Arian Bank is actually an Afghan bank but it has Iranian shareholders. The cancellation of the license is because of grave violations of the laws and guidelines of the Central Bank,” Ashoor said.

“Like Habib Bank, Arian Bank hadn’t offered loans to traders and had zero role in the economic development of Afghanistan.”

Al-Falah and the National Bank of Pakistan are the only foreign financial institutions that came out clean from the review and are allowed to operate, Ashoor said. 

Arian Bank is actually an Afghan bank but it has Iranian shareholders. The cancellation of the license is because of grave violations of the laws and guidelines of the Central Bank.

Aimal Ashoor, Spokesman for Central Bank

Arian Bank was established in June 2004 with initial capital of $10 million. Its goal was to facilitate financial help for Afghan and Iranian traders.

In recent years, Iran has become Afghanistan’s main trading partner. However, a wave of US sanctions slapped on Iran since last autumn has affected trade between the neighbors and led to Iranian goods soaring in price in Afghan markets.

Analyst Akbar Polad said the cancelation of Arian Bank’s license will have no impact on the Afghan economy. “Both Habib Bank and Arian Bank had become means of taking money from Afghanistan, i.e. money laundering. Neither had contributed to economic development and investment in the country,” he told Arab News.

Wahidullah Ghazikhail, who served in the previous Afghan government and runs a think tank, said banks have not had much of a role in the country’s development. 

Among the allegations against Arian Bank is that it provided cash to some opposition politicians, and that may have caused the cancelation of its license, he added. “Closing the bank could create problems for some (traders) in Afghanistan and Iran,” he told Arab News.


Malaysian police question Al Jazeera journalists over report on immigrants

Updated 1 min 54 sec ago

Malaysian police question Al Jazeera journalists over report on immigrants

KUALA LUMPUR: Six members of staff from state-owned Qatari news broadcaster Al Jazeera were questioned by police in Malaysia on Friday.

They are under investigation for sedition following the broadcast of a documentary about the mistreatment of migrant workers in Kuala Lumpur during the coronavirus lockdown.

“The documentary has ignited a backlash among the public,” said national police chief Abdul Hamid Bador. “During our investigation, we found out there were inaccuracies in the documentary that were aimed at creating a bad image of Malaysia.”

He said police have discussed the case with the attorney general and added: “We are going to give a fair investigation and a fair opportunity for them to defend themselves, in case the AG wants to file charges against them.”

The journalists, accompanied by their lawyers, were questioned at police headquarters in Kuala Lumpur.

The 25-minute documentary, titled “Locked Up in Malaysia’s Lockdown,” was broadcast as part of Al Jazeera’s “101 East” documentary strand on July 3. It highlighted the plight of undocumented migrants reportedly arrested during raids on COVID-19 lockdown hotspots. Malaysian officials said the report was inaccurate and misleading.

On Thursday, Al Jazeera said it refutes the charges and “stands by the professionalism, quality and impartiality of its journalism” and has “serious concerns about developments that have occurred in Malaysia since the broadcast of the documentary.” It added: “Al Jazeera is deeply concerned that its staff are now subject to a police investigation.”

However, the incident highlights the broadcaster’s double standards in reporting issues about migrant workers. When Human Rights Watch (HRW) accused Qatar in February of failing to implement a system to ensure construction companies pay migrant workers on time, the issue was not highlighted by Al Jazeera, the headquarters of which is in Doha.

On May 23, migrant workers staged a rare protest in Qatar over unpaid wages but Al Jazeera did not send reporters to interview the demonstrators.

Also in May, HRW said that crowded and unsanitary conditions at Doha Central Prison were exacerbating the COVID-19 threat. The organization urged Qatar to reduce the size of prison populations and ensure inmates have access to adequate medical care, along with masks, sanitizer and gloves. Again Al Jazeera did not focus on the issue.

Activists and civil-society groups criticized the Malaysian government for its heavy-handed move against Al Jazeera.

“The Malaysian government should stop trying to intimidate the media when it reports something the powers that be don’t like,” said Phil Robertson, deputy director of HRW’s Asia division. “The reality is Malaysia has treated migrant workers very shoddily and Al Jazeera has caught them out on it.”

Nalini Elumalai, the Malaysia program officer for freedom of speech advocacy group Article 19, said the action against Al Jazeera is alarming and akin to “shooting the messenger.”

She added: “The government should instead initiate an independent inquiry into the issues raised in the documentary.”

There are at least 2 million migrant workers in Malaysia, though the true number is thought to be much higher as many are undocumented. They are a source of cheap, low-skilled labor in industries considered dirty and dangerous.