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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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Dozens of U.S. lawmakers oppose Afghan immigration freeze after Washington shooting
Sixty-one members of the U.S. Congress have urged the Trump administration to reverse its decision to halt immigration processing for Afghan nationals, warning that the move unfairly targets Afghan nationals following a deadly shooting involving two National Guard members.
In a letter addressed to Secretary of State Marco Rubio and Homeland Security Secretary Kristi Noem, the lawmakers said the incident should not be used to vilify Afghans who are legally seeking entry into the United States. They stressed that Afghan applicants undergo extensive vetting involving multiple U.S. security agencies.
The letter criticized the suspension of Special Immigrant Visa processing, the termination of Temporary Protected Status for Afghanistan, and broader travel and asylum restrictions, warning that such policies endanger Afghan allies who supported U.S. forces during the war.
“Exploiting this tragedy to sow division and inflame fear will not make America safer. Abandoning those who made the courageous choice to stand beside us signals to those we may need as allies in the future that we cannot be trusted to honor our commitments. That is a mistake we cannot afford,” the group said.
The U.S. admitted nearly 200,000 Afghan nationals in the wake of the U.S. withdrawal from Afghanistan.
Thousands of Afghans who worked with the U.S. military and their families still wait at military bases and refugee camps around the world for a small number of SIVs.
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Magnitude 5.3 earthquake strikes Afghanistan – USGS
An earthquake of magnitude 5.3 struck Afghanistan on Friday, the United States Geological Survey (USGS) said.
The quake occurred at 10:09 local time at a depth of 35 km, USGS said.
Its epicentre was 25 kilometres from Nahrin district of Baghlan province in north Afghanistan.
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Chairman of US House intel panel criticizes Afghan evacuation vetting process
Chairman of U.S. House intelligence committee, Rick Crawford, has criticized the Biden administration’s handling of Afghan admissions to the United States following the 2021 withdrawal from Afghanistan.
In a statement, Crawford said that alongside large numbers of migrants entering through the U.S. southern border, approximately 190,000 Afghan nationals were granted entry under Operation Allies Welcome after the U.S. military withdrawal. He claimed that many of those admitted lacked proper documentation and, in some cases, were allowed into the country without comprehensive biometric data being collected.
Crawford said that the United States had a duty to protect Afghans who worked alongside U.S. forces and institutions during the two-decade conflict. However, he argued that the rapid and poorly coordinated nature of the withdrawal created conditions that overwhelmed existing screening and vetting systems.
“The rushed and poorly planned withdrawal created a perfect storm,” Crawford said, asserting that it compromised the government’s ability to fully assess who was being admitted into the country.
He said that there 18,000 known or suspected terrorists in the U.S.
“Today, I look forward to getting a better understanding of the domestic counterterrorism picture, and hearing how the interagency is working to find, monitor, prosecute, and deport known or suspected terrorists that never should have entered our country to begin with,” he said.
The Biden administration has previously defended Operation Allies Welcome, stating that multiple layers of security screening were conducted in coordination with U.S. intelligence, defense, and homeland security agencies. Nonetheless, the evacuation and resettlement of Afghan nationals remains a contentious political issue, particularly amid broader debates over immigration and border security.
U.S. President Donald Trump’s administration recently ordered its diplomats worldwide to stop processing visas for Afghan nationals, effectively suspending the special immigration program for Afghans who helped the United States during its 20-year-long occupation of their home country.
The decision came after a former member of one of Afghanistan’s CIA-backed units was accused of shooting two U.S. National Guard soldiers in Washington, D.C.
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