WASHINGTON—International financial institutions have received the go-ahead from the U.S. Treasury Department to allow money transfers to Afghanistan for humanitarian purposes, including an OK for aid groups to pay teachers and healthcare workers at state-run institutions without issue.
The Treasury offered its guidance on exemptions on the sanctions issued in September and December for those who were concerned about breaching sanctions on the Taliban by sending financial assistance to Afghanistan, Reuters reported.
The United Nations has stated that more than half of the country’s 39 million residents are at risk of suffering extreme hunger and the economy, education and social services are facing collapse following the U.S. withdrawal from the country.
U.N. Secretary-General Antonio Guterres warned Afghanistan was “hanging by a thread” since the Taliban took over the nation in August from Afghanistan’s government. Officials have frozen billions of dollars in Afghan central bank reserves and international development aid to keep it from the Taliban.
Additional Provisions
According to the report, the Treasury has informed financial institutions they can safely process transactions related to humanitarian operations, “including clearing, settlement and transfers through, to, or otherwise involving privately owned and state-owned Afghan depository institutions.”
In permitted transactions involving the Taliban and blacklisted Haqqani Network, FIs are also allowed to sign agreements to provide aid directly to Afghani residents, offer general aid coordination and assist with office space sharing arrangements, Pymnts.com noted.
“Payments of taxes, fees or import duties to, or the purchase or receipt of permits, licenses, or public utility services from” these entities — or any other in which they own more than half — is OK for humanitarian undertakings, the Treasury said.
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