U.S. Watchdog Declares Taliban Lacks Legal Claim to Afghan Funds

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The Special Inspector General for Afghanistan Reconstruction (SIGAR) has declared that the Taliban has no legal rights to billions in Afghan funds, as they are neither recognized as the country's government nor exempt from U.S. sanctions. This statement emerged in SIGAR's latest report, which also advised the U.S. government to consider reclaiming nearly $4 billion in funding previously designated for Afghanistan, according to U.S. officials.

In response, the Afghan Economy Ministry reported that over $9 billion of the country’s foreign reserves remain frozen, asserting any U.S. actions regarding these funds are "unacceptable." SIGAR noted that while humanitarian aid from the U.S. has been crucial in preventing famine, it has not deterred the Taliban's restrictions on rights or their designation as a terrorist entity.

Since the U.S. withdrawal in 2021, approximately $3.71 billion has been spent on Afghan aid, predominantly channeled through U.N. agencies, but the impact on the broader Afghan economy has been minimal, SIGAR emphasized.

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