US advises banks, aid groups over money transfers to Afghanistan

The United States told international banks and aide groups that transferring money to Afghanistan for many humanitarian purposes would not violate sanctions against the Taliban, which took control of the country last year. 

The U.S. Treasury Department said in the guidance Wednesday that banks can process humanitarian-focused transactions “including clearing, settlement, and transfers through, to, or otherwise involving privately owned and state-owned Afghan depository institutions.”

It added that transactions for purposes such as paying public school teachers and healthcare workers at state-run hospitals was acceptable. 

The department also authorized engagement with the Taliban and the Haqqani Network, both of which are designated terrorist organizations, to facilitate such transactions and for humanitarian aid coordination, import administration, travel coordination and even sharing office space.

“Payments of taxes, fees, or import duties to, or the purchase or receipt of permits, licenses, or public utility services from” to companies majority-owned by the Taliban or Haqqani Network are also authorized for humanitarian operations, per the Treasury guidance. 

Last month, the White House announced it would send $308 million in humanitarian aid to Afghanistan as the country was on the brink of economic collapse.

“The new humanitarian assistance by the United States Agency for International Development (USAID) will directly flow through independent humanitarian organizations and help provide lifesaving protection and shelter, essential health care, winterization assistance, emergency food aid, water, sanitation, and hygiene services in response to the growing humanitarian needs exacerbated by COVID-19 and healthcare shortages, drought, malnutrition, and the winter season,” National Security Council spokeswoman Emily Horne said in a statement at the time.

Following the Taliban’s takeover of Kabul in August, much of the international community cut off funding to the Afghan government. But in January, the United Nations asked for international donations exceeding $5 billion to help the country prevent a “full-blown humanitarian catastrophe.”

However, banks have remained wary of moving money into Afghanistan, creating major hurdles for the U.N. and aide groups seeking to provide support on the ground.