Concerns about DAB's leadership, money laundering and terror financing are at the heart of a standoff over the Taliban's demand for the return of Afghanistan’s foreign assets
In 2022, around $3.5 billion was transferred to a Swiss-based Afghan Fund, which will decide on how to disburse the money to the Da Afghanistan Bank , Afghanistan’s central bank. The remaining amount is being held up in lawsuits against the Taliban brought by families of victims of the September 11, 2001, attacks in the United States.
Accrued interest on the $3.5 billion is estimated to be around $200 million, which members say could be released immediately. But they still haven’t agreed on how to do that. A CEO of a private bank in Afghanistan who wishes to remain anonymous told TRT World that members of private banks in the country are also in talks with the Afghan Fund's board of trustees, urging them to prioritise stabilising prices and ensuring adequate liquidity for banks, given the risk posed to the entire financial system due to diminishing foreign aid to Afghanistan.
Banks play a crucial role in lending money to businesses and individuals who want to invest in capital or trade. And this can be done only when there’s enough liquidity in the banking system.