"The long-term purpose of the foundation is to transfer the unused funds to the Central Bank of Afghanistan. This will only occur, however, if the latter can credibly and verifiably demonstrate that it is independent of political influence and can ensure that it has put in place appropriate controls to combat money laundering and terrorist financing, and has established proper external needs assessments and monitoring mechanisms," the council said in a statement.
The foundation will use the assets to promote macroeconomic stability in Afghanistan, including to service debts to international organizations or to import electricity, the statement specified.
"The money forms part of the assets of the Central Bank of Afghanistan that were frozen in the US after the fall of the Afghan government in August 2021. The board of trustees decides on the specific use of the funds and ensures that they are used in the best interests of the people of Afghanistan, that applicable sanctions regimes are respected and that the money does not benefit the Taliban," the statement read.
The foundation's board of trustees consists of two Afghan economic experts, as well as representatives from the US government and a Swiss federal administration, the council noted.
At the beginning of September, the US and Switzerland established a Fund for the Afghan People, which will preserve and partially disperse part of the Afghan frozen assets circumventing the Taliban government.
The Taliban came to power in Afghanistan in August 2021 and prove unable to curb the deepening economic, humanitarian and security crises in the country. Afghanistan imports an estimated 78% of its electricity from neighboring countries, including Tajikistan, Turkmenistan and Uzbekistan, which expressed profound concerns about payments of electricity bills.
In February, US President Joe Biden signed a controversial executive order to split $7 billion in Afghan assets, which include savings of ordinary Afghans, between humanitarian assistance for Afghanistan and American victims of 9/11 attacks.
*Organization is under UN sanctions over terrorist activities