Corruption in Afghanistan is a widespread and growing problem in Afghan society. Afghanistan ranks 169 of 176 in Transparency International's 2016 Corruption Perceptions Index. "In opinion surveys of Afghans," noted the Asia Foundation in a 2012 report, "corruption is consistently singled out as a problem."
One of the recent major corruption cases was the 2010–13 Kabul Bank financial scandal involving Mahmood Karzai and others close to President Hamid Karzai. The Kabul Bank scandal, crisis, investigation and trial involved Sherkhan Farnood, Khalilullah Fruzi, Mohammed Fahim, and other insiders who were allegedly spending the bank's US$1 billion for their personal lavish living style as well as lending money under the table to family, friends, and those close to President Hamid Karzai and Mahmood Karzai. As of October 2012, the government only recovered $180 million of the $980 million fraudulent loans.
A U.N. survey listed corruption and insecurity as the two issues of greatest concern to Afghans as of 2012. The New York Times has written that in Afghanistan, "corruption can no longer be described as a cancer on the system: It is the system." The U.S. Agency for International Development stated in 2009 that corruption in Afghanistan had "become pervasive, entrenched, systemic, and by all accounts now unprecedented in scale and reach."
In a 2011 survey by the Asia Foundation, Afghans said corruption was their "third biggest problem (21%) after insecurity (35%) and unemployment (23%)." In 2010 and 2011, they said corruption was their second most important reason for feeling pessimistic about Afghanistan (16% in 2011 and 27% in 2010). In 2011, they identified administrative corruption as the government's second most important failure (25%). This marked an improvement over 2010, when the figure was 30%.
In Afghanistan today, corruption most often takes the form of demanding and offering bribes, both in the private and public sectors and on large and small scales. There are also many other major forms of corruption, including nepotism, graft, and illegal land transfers. The US Special Inspector General for Afghan Reconstruction (SIGAR) has estimated that over half of the nation's annual customs revenue is lost to graft.