Masses of counterfeit currency notes, printed locally, have made their way into the banking system in the western provinces. Security officials say the machinery has been smuggled from China and Pakistan. An investigation.
Drug traffickers and armed opponents of the government are involved in the printing and distribution of the cleverly forged notes.
Abdul Rauf Ahmadi, Herat Police spokesperson, said security forces found a money-printing machine in the capital’s 7th Canton. Three people were arrested from the Shalbafan area and cash in three currencies – 25,000 Afs (390 USD), 22,000 Pak Rupees (210 USD) and 900 USD – confiscated. The men were also found in possession of weapons, nailing their involvement with armed opponents of the government or drug smugglers, according to the police.
In a signed confession to the police, a copy of which was given to Killid, Abdullah, one of the men says, “I am involved in printing of forged money for the last two months along with my two partners … We prepared 200,000 Afs (nearly 4,000 USD) to sell to one person who came to us, but anti-terrorism police of Herat arrested us.”
He admits to purchasing the printing equipment along with his partners.
The provincial directorate of intelligence confirms that machines made in China or Pakistan are brought across the border to print fake Afghanis. Mohammad Nayeem Ghuyor, intelligence head, says the machines are like very sophisticated photocopiers. In addition to counterfeit notes that are made in Afghanistan, forgeries made outside the country – some believe in neighbouring Pakistan – have for years been a problem. With the government unable to stop the proliferation of forged banknotes, public confidence in banking in Afghanis has never been lower.
Counterfeit notes are entering through the hawala route from Pakistan, Iran and Russia, says a senior intelligence officer who did not want to be identified. According to him, the money enters the market through money changing shops mainly in the border Farah province, which could be checked if only the central bank was to introduce a new policy.
Bogus Afghanis are used to trade in illegal weapons, narcotics and ammunitions.
Ahmad Farid Bakhtawar, the head of the provincial council in Farah says he thinks the distribution of forged money has unfortunately increased this year. He says the notes in circulation are of much bigger face-value than previously. In the past, forgeries were of 50 and 100 Afghani notes (one USD is equal to 65 Afs). Now the counterfeits are of 500 and 1,000 Afs denominations (roughly 8 and 16 USD).
Shared concern
The authorities in Ghor and Nimroz also confirm the problem of forged currency notes in their provinces. Haji Mohammad Yunus Arab, a representative in the latter’s provincial council, says police officials in the counter crimes department of Nimroz arrested six individuals along with 47,000 forged Afghanis (about 730 USD). He says the proliferation of forgeries has made people mistrust real widespread at the usage of forged has caused that the people in Nimroz mistrust all local money.
Abdul Hai Khatibi, spokesperson for the Ghor governor, says the forged notes are reaching the province through money changing shops in Helmand. Unfortunately, people in the districts, who have a low level of awareness about how to identify counterfeit banknotes, are ending up as victims.
Interviews with police and intelligence all suggest that money changers are behind the huge fraud. However, the Herat Tellers’ Union rejects the charge and points fingers at petty street money changers. Bahaudin Rahimi, the head, says there are roughly 2,000 hawkers dealing in currency notes and a majority is not registered. He blames the central bank for not monitoring the business.
According to Rahimi, the 300 currency changing shops in the Khurasan market are registered with the Herat Tellers’ Union. Forged banknotes are mostly circulating in Badghis, Farah and Ghor where the system of checks is very weak, he says.
At first Rahimi refused to accept that money changers were a conduit for fake Afghanis flooding the country. But on persistent questioning by Killid he admitted that some “10 percent” of hawala transfers by money changing shops were forgeries and 30 percent of the street business.
Proliferating counterfeits
Farhad, a currency hawker in a Herat market agreed that some of his colleagues were involved in illegal business. Unfortunately, their numbers were growing every day under the government’s nose, he added. Locals in Herat City complain that fakes are slipped in between wads of banknotes.
Anwar Shah Yusufi, a central bank official who’s head of banks in the western zone, confirms counterfeit currency is in circulation but he claims the quantum is less than it is in the south of the country. He insists the central bank has succeeded in raising public awareness about identifying fake money from real Afghanis. The bank has printed hundreds of posters identifying warning signs for forged notes in public interest. For instance, counterfeits are darker in colour and smoother than a genuine banknote, particularly around the central bank seal.
Yusufi agreed the bank has failed to register all money changers.
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