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Audit fails to win U.S. backing for release of Afghan central-bank funds
A U.S. funded audit of Afghanistan’s Islamic Emirate-run central bank has failed to win Washington’s backing for a return of bank assets from a $3.5 billion Swiss-based trust fund, said two U.S. officials and a former U.S. official, a move that would help ease the country’s financial crisis, Reuters reported.
The audit has not changed the U.S. Treasury’s view that the bank must make reforms before the department will support disbursements from the Afghan Fund to Da Afghanistan Bank (DAB), said a U.S. Treasury official on condition of anonymity.
The Swiss-based Afghan Fund was set up last year with half of about $7 billion in central bank funds that were frozen in the Federal Reserve Bank of New York in August 2021 after IEA took control of the country as the last foreign forces withdrew following two decades of war.
DAB must show that it is free “from political influence and interference,” said the Treasury official, referring to the need for professional bankers to replace the three IEA officials who oversee the bank and are under U.S. and U.N. sanctions.
It also must prove that it has “adequate” controls against money-laundering and terrorism financing and install a “reputable” independent monitor, said the Treasury official.
“Our assessment of DAB remains unchanged,” said one of the U.S. officials. Reuters quoted the two officials and the former U.S. official, who has knowledge of the U.S. position, spoke on condition of anonymity because of the confidentiality of the matter.
The IEA administration spokesman and a spokesperson for the Afghan central bank did not respond to request for comment.
Concerns in Washington and other capitals about the bank’s leadership and anti-money laundering safeguards are at the heart of a standoff over the IEA’s demand for the return of DAB cash frozen in the United States and other countries after the Islamic Emirate return.
Because the four-member board that oversees the trust fund must approve disbursements unanimously, the support of its U.S. government representative is essential.
Afghanistan remains mired in grave humanitarian and economic crises that some experts say has been worsened by U.S. restrictions hampering DAB’s ability to perform key central bank functions, such as ensuring stable exchange rates and prices, read the report.
The audit, funded by the U.S. Agency for International Development (USAID) and conducted by an outside contractor, examined DAB’s controls against money laundering and terrorism financing, and its banking oversight and payments departments, according to an April report by the U.S. Special Inspector General for Afghanistan Reconstruction (SIGAR).
The findings have not been made public, Reuters reported.
Calling the audit, a “preliminary assessment,” the Treasury official said its “limitations” suggested that “more comprehensive third-party assessment efforts may be needed.”
Shah Mehrabi, an Afghan-American economics professor who is on DAB’s governing board and co-chairs the Afghan Fund board, said the audit – which he has not seen – was completed in March and currently is with the State Department.
The State Department declined to comment.
Mehrabi and his co-chair, Anwar ul-Haq Ahady, a former DAB governor and former finance minister, told Reuters that they would consider the findings once they are available.
Mehrabi said use of the Afghan Fund’s assets should focus on stabilizing prices and ensuring banks had enough liquidity, as the entire financial system was at risk from declining foreign donor funds to Afghanistan.
The other $3.5 billion in DAB assets frozen in US is being sought in lawsuits against the IEA brought by families of victims of the Sept. 11, 2001, attacks on the United States. A U.S. judge in February ruled against the plaintiffs who are appealing.
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Airstrike on Kabul drug rehabilitation centre sparks legal concerns
Amnesty International’s Deputy Regional Director for Research, Isabelle Lassee, said the scale of casualties suggests the presence of a significant civilian population at the site.
An airstrike on a drug rehabilitation facility in Kabul has drawn sharp criticism from Amnesty International, raising serious questions about compliance with international humanitarian law.
The strike, carried out on 16 March, targeted a site at Camp Phoenix, a former military base that has functioned largely as a rehabilitation centre since 2016. Pakistani officials have claimed the attack was aimed at an ammunition depot allegedly located within the compound.
Responding to those claims, Amnesty International’s Deputy Regional Director for Research, Isabelle Lassee, said the scale of casualties suggests the presence of a significant civilian population at the site.
“While the total number of casualties has yet to be independently verified, it is clear that the attack caused extensive civilian harm, with reports indicating hundreds killed or injured,” she said.
Lassee emphasized that the facility was widely known to house civilians undergoing treatment, and warned that any military action should have taken this into account. “Pakistan’s military should have taken all feasible precautions to avoid harming civilians and civilian infrastructure,” she added.
She further noted that even if a military target had been present within the compound, international law requires that any strike be proportionate, ensuring that civilian harm is not excessive in relation to the anticipated military advantage.
“The scale of destruction raises serious concerns about whether an adequate proportionality assessment was conducted and whether sufficient steps were taken to verify the target and minimize civilian casualties,” Lassee said.
Amnesty International has called on Pakistani authorities to disclose the intelligence behind the strike and to launch an independent, impartial, and transparent investigation into the incident. The organization stressed that findings should be made public to ensure accountability.
The group also urged all parties involved in the conflict to adhere strictly to international humanitarian law and to protect civilian infrastructure, including medical and rehabilitation facilities.
The airstrike formed part of Pakistan’s “Operation Ghazab Lil Haq,” which included strikes in both Kabul and Nangarhar Province. The targeted rehabilitation centre, known as Omid, reportedly had the capacity to accommodate around 2,000 individuals.
Casualty figures remain contested. Islamic Emirate officials claim more than 400 civilians were killed and over 200 injured, though these numbers have not been independently verified. The United Nations has so far confirmed 143 deaths.
The strike comes amid escalating tensions between Afghanistan and Pakistan. According to the United Nations Assistance Mission in Afghanistan, at least 76 civilian casualties had already been recorded since the conflict intensified in February.
Pakistani officials, meanwhile, reported civilian casualties on their side of the border, including four deaths in Bajaur district on 15 March and the killing of a child in North Waziristan earlier in the month, allegedly due to cross-border fire from Afghanistan.
The latest developments underscore growing concerns about civilian safety as hostilities between the two countries continue to intensify.
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Afghanistan expresses condolences after deadly helicopter crash in Qatar
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Pakistan seeks Russian mediation to resolve Afghanistan tensions
Pakistan’s ambassador to Russia, Faisal Niaz Tirmizi, has confirmed that Islamabad has asked Moscow to mediate in the ongoing conflict with Afghanistan.
In an interview with Russian daily Izvestia, Tirmizi said Pakistan is engaging with Russia and appreciates the “wonderful offer” to help resolve tensions. He noted that proposals from Russia, China, Qatar, Turkey, and Saudi Arabia led to an agreement on a temporary ceasefire.
“We tell all our interlocutors: please tell the Taliban (IEA) not to use this opportunity simply to regroup, recuperate, rearm, and re-attack,” Tirmizi said. “Because such large states as Russia or Pakistan cannot be destabilized by terrorist acts.”
The ambassador emphasized that decades of war in Afghanistan have affected not only Kabul and Islamabad but also neighboring countries, including Iran, Tajikistan, Turkmenistan, Uzbekistan, and even Russia. “Therefore, we must all trade with each other, develop education, art, and culture. Terrorism is the wrong way to go,” he added.
The appeal for mediation comes amid rising cross-Durand Line tensions and violence that have killed hundreds and displaced thousands in recent weeks.
Pakistani officials have repeatedly claimed that militant attacks in the country are organized in Afghanistan.
The IEA however denies the claim saying that Afghanistan is not responsible for Pakistan’s “security failure.”
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