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.


Peaceful, prosperous, strong Bangladesh in Pakistan's interest, says envoy

Updated 27 January 2020

Peaceful, prosperous, strong Bangladesh in Pakistan's interest, says envoy

  • Pakistan's high commissioner to Bangladesh says more people-to-people contact necessary

DHAKA: Islamabad wants to enhance “people-to-people” contacts with Dhaka and boost bilateral relations in the areas of trade, business, education, culture and sports, Pakistan’s high commissioner to Bangladesh told Arab News on Thursday.
Imran Ahmed Siddiqui arrived in Dhaka this month after being appointed to the role in November, filling a post that had been vacant for nearly 20 months.
“In addition to government-to-government ties, my endeavor will be to promote and strengthen people-to-people contact as well as bilateral, economic, trade and cultural ties between our two countries,” Siddiqui said. He added that he had sensed a “similar desire among the people and the government of Bangladesh.”
At the end of British colonial rule of India in 1947, the territory of what is now Bangladesh became East Pakistan, politically united with West Pakistan but separated from it by hundreds of kilometers of Indian land.
East Pakistan broke away to become Bangladesh after a war between India and Pakistan in 1971 that killed nearly 3 million people. Relations between Islamabad and Dhaka have remained frosty since.
In 2019, Bangladesh imported goods worth around $736 million from Pakistan, while the country’s export volume was around $44 million, according to the State Bank of Pakistan.
Siddiqui said: “There’s huge potential that still remains to be explored and tapped. We have to work in partnership to facilitate frequent productive engagements between our commercial sectors, including robust participation in each other’s trade exhibitions and shows, and closer collaboration between the chambers of commerce and industry.”
The two countries also need to work together to address issues relating to their business visa regimes, he added.
“While Pakistan has already upgraded Bangladesh to Visa Category A, a similar measure by the Bangladesh government could help promote frequent interaction between our business communities, which is a prerequisite for strong trade relations,” Siddiqui said.
The Bangladeshi cricket team is currently playing a three-match T20 series against Pakistan at Gaddafi Stadium in the Pakistani city of Lahore. The third match of the series will be played next Monday.
Siddiqui said the Bangladeshi cricket team’s Pakistan tour is the beginning of a new era of friendship between the two nations. It will enable them “to further promote constructive bilateral engagements at all levels,” he added.
“I believe this cricket series will look more like a sporting event between two brothers and friends, rather than a fight between two rivals,” he said.
“This visit will generate mutual goodwill and friendliness, and will bring our two nations even closer.”
Siddiqui expressed appreciation for the “hospitality” of the Bangladeshi government toward more than 730,000 Rohingya Muslims who have fled Myanmar’s Rakhine state after a military-led crackdown in August 2017 that the UN has said was perpetrated with “genocidal intent.” Myanmar denies this.
Siddiqui said Pakistan is “constructively engaged” with different international organizations on the issue of Rohingya refugees, including the Organization of Islamic Cooperation.
“We’ve noted with appreciation the hospitality offered by the Bangladesh government to a large number of refugees, as we ourselves have been sheltering, in the recent past, the highest number of refugees in the world,” he added, referring to Pakistan’s large population of Afghan refugees.
“We support all efforts for the return of refugees in safety and dignity. Pakistan is closely monitoring international developments in this regard, and will remain engaged in the future too.”
He said Pakistan views Bangladesh with “respect, affection and admiration,” adding that “a peaceful, prosperous and strong Bangladesh is in our interest.”