The Special Inspector General for Afghanistan Reconstruction (SIGAR) has declared that the Taliban has no legal right to nearly $4 billion in Afghan funds. This assertion stems from the Taliban's lack of recognition as the legitimate government of Afghanistan and the ongoing sanctions against them. In its most recent report, SIGAR indicated that President Trump’s administration may explore the option of returning these funds to U.S. custody.

In a significant fiscal move, the U.S. had previously transferred $3.5 billion in frozen Afghan central bank assets to a Switzerland-based fund aimed at directly aiding the Afghan populace. This fund has since reportedly grown to almost $4 billion, intended for the protection and stabilization of Afghanistan's economy, although no payments have been made to date. According to the report, "The Taliban want these funds even though they have no legal right to them since they are not recognized by the United States as the government of Afghanistan, are on the U.S. Specially Designated Global Terrorist list, and are under U.S. and U.N. sanctions," the report summarized.

This statement coincides with the Taliban's recent denouncement of claims surrounding the potential retrieval of these frozen assets. The Taliban Ministry of Economy emphasized that any U.S. action to control these funds would be "unacceptable." Following the end of U.S. military involvement in Afghanistan, President Biden had frozen approximately $7 billion held in U.S. banks to mitigate potential actions against the Taliban, with another $2 billion also secured by European nations.

Over the past two years, the U.S. has invested approximately $3.71 billion into humanitarian efforts in Afghanistan, primarily funneled through U.N. agencies. Most of this expenditure aims to mitigate the acute humanitarian crisis plaguing the nation, although the SIGAR has cautioned that much of this assistance is subject to misappropriation or diversion.

Despite claims that U.S. aid has helped stave off famine amidst economic upheaval, the Taliban insists that such actions have not addressed the fundamental issues undermining Afghanistan's economy. "Any action by the United States regarding the allocation, use, or transfer of these reserves is unacceptable," they insisted.

As tensions continue to escalate regarding the status of Afghan assets, SIGAR underlined the significant impact of U.S. foreign aid, stating that millions in Afghanistan are in dire need of humanitarian support as assessments reflect ongoing instability. However, the ongoing restrictions and sanctions on the Taliban hinder any potential restoration of international relations and the release of frozen assets, further complicating the country’s economic recovery efforts. For further insights, visit South China Morning Post and VOA News.