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

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The U.S. Special Inspector General for Afghanistan Reconstruction (SIGAR) has stated that the Taliban have no legal right to billions of dollars in Afghan funds due to their unrecognized status and sanctions against them. According to SIGAR's latest report released on February 1, 2025, the Taliban's claim to around $4 billion, which is held in the Swiss-based Fund for the Afghan People, is unjustified as they are designated as terrorists by the U.S. government.

The report also indicated that nearly $3.5 billion in Afghan central bank assets were transferred to the fund in 2022, but no payments benefiting the Afghan population have been made yet. The Taliban's Economy Ministry responded, asserting that over $9 billion of the country’s foreign reserves remain frozen and insisting that any U.S. actions regarding these funds are unacceptable.

Despite significant American financial assistance since the U.S. withdrawal in 2021, SIGAR reported that aid has not effectively improved the situation in Afghanistan, where humanitarian crises continue amidst ongoing repression of women's rights and media.

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