This information is derived from the State Department's Office of Investment Affairs' Investment Climate Statement. Any questions on the ICS can be directed to EB-ICS-DL@state.gov
Last Published: 11/2/2016

Afghan and foreign firms routinely cite corruption as their biggest obstacle to doing business, whether in permitting and licensing, government procurement, meeting regulatory requirements, or taxation. Reports indicate corruption is endemic throughout society. As just one example, systemic corruption at border crossings hampers development of the licit market economy. Afghan officials collect bribes in exchange for undervaluing, under-weighing, or not scanning shipments, which facilitates smuggling of illegal goods and the illicit trade of legal goods, while also weakening Afghan revenue collection and regulatory institutions. The practice of criminalizing commercial complaints is commonly used to settle business disputes or extort money from wealthy international investors. The government does not implement criminal penalties for official corruption effectively, and officials are reported to frequently engage in corrupt practices with impunity. There are reports of low-profile corruption cases successfully tried and of lower-level officials removed for corruption.

President Ghani has made anti-corruption efforts a major focus of his attention and the government has seen some success in reform of procurements and customs. But despite high-level attention, corruption remains systemic.

Disputes over land and land grabbing have risen over the last decade. Reports indicate that government officials have grabbed land without compensation to swap for contracts or political favors. Occasionally, provincial governments illegally confiscated land without due process or compensation to build public facilities.

UN Anticorruption Convention, OECD Convention on Combatting Bribery
Afghanistan has signed and ratified the UN Anticorruption Convention. Afghanistan is not party to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.

Resources to Report Corruption
The Afghan Government body responsible for combating corruption is the High Office of Oversight & Anti-Corruption, though prosecutorial authority has been transferred to the Attorney General’s Office.

Afghan Government Point of Contact:
Aminullah Amini
Head of Information and Communication Technology Department
High Office of Oversight & Anti-corruption
+93 777 628220
aminullaha@anti-corruption.gov.af

Watchdog Organization Contact:
Sayed Ikram Afzali
Executive Director
Integrity Watch Afghanistan
ikram.afzali@iwaweb.org

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Afghanistan Economic Development and Investment Market Access