Swiss foundation to manage frozen Afghanistan funds

The Taliban took back control of Afghanistan in August 2021. Copyright 2022 The Associated Press. All Rights Reserved.

Switzerland will have a seat on a foundation that has been set up in Geneva to manage $3.5 billion (CHF3.3 billion) in Afghanistan central bank funds that were frozen as the Taliban took control of the country.

The board of trustees will be completed by two Afghan economists and a representative of the United States administration, it was announcedExternal link on Wednesday.

“The board of trustees decides on the specific use of the funds and ensures that they are used in the best interests of the people of Afghanistan, that applicable sanctions regimes are respected and that the money does not benefit the Taliban,” read a Swiss government statement.

The money will likely be used to pay off Afghanistan’s debts or to procure electricity for the country that fell into Taliban hands in August, 2021.

“Complementing its long-standing humanitarian engagement in Afghanistan, Switzerland’s support and participation in the foundation promotes macroeconomic stability and thus medium- and longer-term prospects for the people of Afghanistan,” the Swiss government said.

The long-term goal of the foundation is to transfer unused funds to Afghanistan’s central bank if it “can credibly and verifiably demonstrate that it is independent of political influence and can ensure that it has put in place appropriate controls to combat money laundering and terrorist financing and has established proper external needs assessments and monitoring mechanisms.”