DHAKA: Afghan president Hamid Karzai signed a law aimed at curbing the financing of terrorist groups, a government statement said on Thursday, the second of two measures needed to save its banks from being put on an international blacklist.

‘After the judiciary verified that this law does not violate our national sovereignty and human rights, he (the president) ratified it,’ the statement said, reports The Straits Times.

Together with the anti-money laundering law that was signed last week, the legislation will help persuade the international financial watchdog that the Afghan government is serious about combating financial crimes.

Many banks have already stopped dealing with Afghanistan because of weak regulation, making it difficult for businesses to pay for imports or families to send money to children studying abroad.

BDST: 1627 HRS, JULY 03, 2014