The US has agreed to release a portion of Afghanistan's frozen funds through the Swiss Bank. The assets were seized when the Taliban came to power a year ago.
Sources close to the negotiations said that Washington is planning to deposit $3.5 billion with the Bank of International Settlements. A board of international experts has already been set up to disburse the money, reported TRT World.
The US has around $9 billion of Afghanistan's central bank foreign currency assets. When the country's population started struggling with basic amenities like food and medicines, an outcry to release the funds over humanitarian reasons rose. Many termed it the collective punishment of Afghans.
A campaign under the hashtag Unfreeze Afghanistan called out the US response regarding funds and described the crisis in the South Asian country as one of the worst man-made humanitarian crises. Many agreed that sanctions and isolation will not help the people of Afghanistan. Over 40 human rights organisations joined the campaign.
The US hasn't yet recognised the Taliban government and has been determined to find a way to spend the funds without allowing the Taliban to use them. The State Department refused to recapitalise Afghanistan's central bank (DAB). Now, the US agreed to allow the DAB to receive the funds after implementing strict compliance with anti-money laundering and terrorist financing protocols. The US has also demanded third-party supervision of the funds.
The Taliban has accepted the proposal for third-party supervision but wants authority over how it is used. Taliban spokesperson Suhail Shaheen told TRT World that the frozen reserve is the property of the Afghan people. "It is for the people of Afghanistan to decide on what to do with its reserve and how to use it. A unilateral decision about the reserve of Da Afghanistan Bank is illegal unless agreed to by DAB."
The US has decided to distribute $3.5 billion in Afghan funds as compensation to the victims of the 9/11 attacks. The decision was slammed by people across the world because Al Qaeda, not the Taliban, was responsible for the attack.