Feb 2, 2022 - World
U.S. lets international banks transfer aid funds to Afghanistan
International banks can transfer money to Afghanistan for humanitarian reasons without fear of violating U.S. sanctions against the Taliban, the Treasury Department said in a guidance out on Wednesday.
Why it matters: The Afghan economy has been dependent on foreign aid and investment, and the takeover by the Taliban, which had been under U.S. sanctions since 2001, had put financial institutions in the middle of the global clash.
Details: Banks can process transactions related to humanitarian aid, "including clearing, settlement, and transfers through, to, or otherwise involving privately owned and state-owned Afghan depository institutions," the guidance says.
- The Treasury Department in the guidance affirmed its "commitment to supporting the people of Afghanistan and seeking solutions to mitigate humanitarian challenges on the ground while preventing the flow of funds to illicit activities."