Kabul Bank scandal

The Kabul Bank scandal involved massive fraud and mismanagement in Afghanistan's largest private bank. Key officials, including executives and government-connected individuals, engaged in embezzlement, illegal loans, and money laundering, diverting around $800 million—an enormous sum for Afghanistan—out of the bank. This led to a financial crisis, destabilizing the economy, causing public loss of confidence, and requiring government intervention to stabilize the banking system. The scandal highlighted weak regulation and corruption, severely impacting Afghanistan’s economic development and trust in financial institutions.