Taliban lacks legal right to Afghan fund worth billions

In February 2022, following the U.S. withdrawal from Afghanistan, the U.S. government transferred $3.5 billion in Afghan central bank assets, which had previously been frozen, to a Swiss-based initiative known as the Fund for the Afghan People. By the end of 2022, this fund grew to nearly $4 billion, intended to stabilize Afghanistan's economy and protect the welfare of Afghan citizens. However, the Taliban, who are considered terrorists under U.S. and U.N. sanctions, claim rights over these funds despite being unrecognized as Afghanistan's legitimate government. The Special Inspector General for Afghanistan Reconstruction issued a report asserting that the Taliban's claims to these funds are unfounded. They emphasized that due to the Taliban's lack of recognition and their status under sanctions, returning funds to their control would not align with U.S. interests. As the humanitarian crisis in Afghanistan worsened, the U.S. continued to be the largest donor to the country, with nearly $3.71 billion in aid distributed since the withdrawal. Unfortunately, reports state that a significant portion of this assistance gets taxed or diverted, raising concerns over transparency and efficacy in delivering much-needed aid to the Afghan populace. While U.S. humanitarian assistance slowed the famine rates in the country, troubling actions by the Taliban, such as hostage-taking, human rights violations, and attempts to suppress the media, have continued unabated. Under these conditions, there are ongoing debates in the U.S. about the wisdom of returning any funds earmarked for Afghanistan while the Taliban remain in power.