Gardaí and Irish financial institutions will be joining an international effort to monitor flows of cash into Afghanistan following the takeover by the Taliban.
olice sources said banks will be on “high alert” for the movement of money in and out of the country as the hardline Islamist group tries to shore up the country’s finances as international funds are cut off.
“All the banks are on high alert,” a source said. “The movement of cash will be closely monitored by Irish banks and any suspicious transactions will be reported to the Financial Intelligence Unit at the Garda National Economic Crime Bureau.”
Afghanistan is expected to be starved of overseas funds in the immediate term as the Taliban remains subject to international sanctions.
The crackdown is expected to lead to an increase in attempts to get funds into the country illicitly.
A Europol report on terrorism published in June found the small number of Irish-based individuals who were suspected of fundraising for jihadism had transferred funds to Afghanistan as well as Turkey and other countries in Europe.
The Europol Terrorism and Situational Trend report found 18 people were arrested for suspected jihadist terrorist offences in Ireland last year. Seventeen of those were arrested on suspicion of financing terrorism. Several security experts and commentators have warned that the Taliban’s victory will boost international jihadism.
Most of Afghanistan’s $9bn (€7.7bn) reserves are held overseas and, for now, out of reach of the Taliban. The US said it would not provide access to funds. A delivery of €370m in International Monetary Fund (IMF) payments due to arrive in Afghanistan last Sunday was cancelled.
The IMF said Afghanistan will no longer be able to access its resources because of a “lack of clarity” regarding the recognition of a new Afghan government.
Western Union, the money transfer service, has cancelled transfers to Afghanistan following the Taliban takeover. The company said it intends to monitor the situation.
The Central Bank requires all credit and financial institutions to monitor customers and transactions against both the EU and UN sanctions lists relating to terrorism.
Ireland has limited commercial dealings with Afghanistan. Trade last year was valued at €7.7m, with exports accounting for €7.5m and imports €180,000, according to the Department of Enterprise, Trade and Employment.
Most of the trade is believed to be in industrial products.
The Department of Foreign Affairs said UN sanctions against the Taliban, first imposed in 1999, involve an asset freeze, travel ban and arms embargo on 135 individuals and five entities associated with the insurgents.
Separate UN and EU sanctions against IS and Al-Qaeda include individuals or entities that may have some connection to Afghanistan, the department said.
A recent UN report found the Taliban’s primary sources of funding were criminal activities, including drug trafficking and opium poppy production, extortion and kidnapping and collecting taxes from areas under Taliban control.
Afghanistan accounts for more than 80pc of the world’s heroin supply.