UK regulator warns of financial crime risks following Taliban takeover in Afghanistan

Britain's financial watchdog has urged banks to be vigilant about the risk of being used for criminal operations such as terrorist financing or money laundering in Afghanistan following the Taliban takeover.

Financial firms "should be aware of the possible impact" of recent events "when they assess risks related to particular customers and flows of funds", the Financial Conduct Authority (FCA) said in a statement released on its website.

Banks should "appropriately monitor and assess transactions to Afghanistan to mitigate the risks if their firm being exploited to launder money or finance terrorism," it added.

Any suspicious activity should be reported to the relevant UK authorities, the regulator said, reminding banks of their legal obligations.

The City of London is regularly accused by anti-corruption NGOs of not doing enough to combat money laundering, although banks argue that they comply with the law and that their industry spends billions of pounds a year fighting economic crime.