US likely to release a part of Afghanistan’s frozen asset
The United States has agreed to release a part of Afghanistan’s frozen assets, which were seized after the Taliban came to power last year, according to a resport by TRT World.
A report by TRT World on Tuesday evening states the the $3.5 billion in fund is to be likely released to the Bank of International Settlements (BIS) based in Basel, Switzerland while an international board of experts has also been set up to disburse the money.
The announcement is expected to be made in the coming weeks.
Around $9 billion of Afghanistan’s central bank foreign currency assets held with US and other foreign banks were frozen after the Taliban took over Kabul on August 15, 2021 ending the US-backed government of President Ashraf Ghani.
US President Joe Biden’s administration went ahead with talks on releasing Afghanistan’s foreign-held assets last month despite the late al Qaeda leader Ayman al Zawahiri’s presence in Kabul.
The State Department, however, ruled out recapitalising Afghanistan’s central bank (DAB) as “a near-term option” after Zawahiri was killed, claiming that the Taliban had raised worries by harbouring him in violation of the 2020 US troop withdrawal agreement.
In the new development, DAB may receive the funds for end use “but the US would want a strict compliance with anti-money laundering and terrorist financing protocols in addition to a third-party supervision of the funds.
