Following the United States announcement of transferring $3.6 billion of Afghanistan’s central bank reserves to a trust fund in Switzerland, the establishment of this fund has sparked varied reactions. Certain political factions and economic experts argue that the fund lacks a legal framework, potentially enabling Taliban access to these assets. They point out that a member of the central bank’s high council, under Taliban control, who also serves on this trust fund, raises doubts about its transparency and independence. The trust fund charter allows its members unrestricted control over currency reserves, raising concerns about the potential misuse of Afghanistan’s assets. Recently, the Swiss Federal Council disclosed signing an agreement with the trust fund concerning its privileges and immunities, thereby facilitating enhanced cooperation and positioning for the trust fund. Some economic experts and political factions express serious concerns regarding the trustees’ handling of the fund, fearing it will only serve to enrich the Taliban.
Recently, the Swiss Federal Council announced in a statement that it has signed an agreement with Afghanistan’s trust fund regarding “privileges and immunities,” effective from February 1, 2024. The statement highlights that by signing this agreement, the Swiss Federal Council recognizes the international significance of Afghanistan’s trust fund for safeguarding Afghanistan’s assets.
The privileges and immunities agreement between the Swiss Federal Council and Afghanistan’s trust fund, approved by the council on December 15, 2023, became operational following the signing by both parties on February 1 of this year.
Established in September 2022 under Swiss laws, Afghanistan’s trust fund’s primary duty is to safeguard Afghanistan’s $3.6 billion currency reserves. The trustees of Afghanistan’s trust fund are authorized to facilitate specific payments for the benefit of Afghanistan’s people, including payments for supportive imports such as energy to meet the basic needs of Afghanistan’s people and contribute to the country’s economic stability.
According to the charter establishing Afghanistan’s trust fund, its trustees are responsible for determining and allocating specific monetary funds and ensuring that the assets are used in a manner beneficial to Afghanistan’s people while adhering to all relevant sanction regimes.
According to the trust fund’s founding document, the board still ensures that funds are transferred to the Afghanistan Central Bank only if the bank demonstrates its independence from political influence and guarantees appropriate measures to combat money laundering and financing terrorism.
However, Mir Shekib Mir, a former official of financial services development at the Afghanistan Central Bank (Da Afghanistan Bank), told the Hasht-e Subh Daily that there are multiple concerns about the Taliban’s potential misuse of the trust fund. He emphasizes that payments for essential goods such as energy from Afghanistan’s trust fund in Switzerland imply indirect Taliban access to the country’s currency reserves. According to him, electricity bills are paid from the trust fund, while the Taliban collect electricity fees from the people, generating billions of dollars in revenue annually. The former official of the bank adds that there is no transparent mechanism in this regard, and the Taliban directly and indirectly benefit from these funds. He states that with the infusion of these funds, economic pressure on the Taliban decreases, allowing the group to use people’s money for its ideological interests.
Mr. Mir states that Shah Mohammad Mehrabi, a member of Afghanistan’s trust fund in Switzerland, is also a member of the high council of the central bank under Taliban control and has participated in at least two sessions of this council in the past year. According to him, “All central bank policies are discussed in the central bank’s high council, and there is no guarantee that Mr. Mehrabi will not pave the way for the Taliban’s benefit, and this money will not fall into the hands of the Taliban.”
He further explains, “Mehrabi is an employee of the Central Bank and directly serves under the Taliban’s head for the Central Bank, who is listed under sanctions. His membership in the High Council implies his involvement in decision-making and effective collaboration with the Taliban. His presence in the trust fund raises serious concerns.”
Nevertheless, some political factions and alliances have expressed grave concerns about the Taliban’s access to the country’s currency reserves. According to them, Afghanistan’s trust fund in Switzerland enriches the Taliban and serves entirely in their favor.
The National Resistance Council for the Salvation of Afghanistan has raised concerns regarding the operations of Afghanistan’s trust fund in Switzerland. According to the council, the fund’s activities and the misuse of Afghanistan’s currency reserves are empowering the Taliban. Comprising various political movements and activists, the council emphasized in a statement that Afghanistan’s currency reserves belong to the nation’s citizens and should not serve to “enrich an extremist group with a terrorist approach.”
The council’s statement reads, “Since this entity lacks legal and regulatory oversight and some of its members are accused of abusing their positions, serious concerns exist regarding the fund’s operational procedures and misuse of Afghanistan’s currency reserves.” According to the council, “Based on the Central Bank law, this entity should be politically independent, but currently, the bank is led by a Taliban figure who is under UN sanctions for terrorist activities.” The council emphasizes that until the establishment of a legitimate and legal government, no group or entity has the authority to make decisions regarding Afghanistan’s currency reserves.
This comes as members of the U.S. House Foreign Affairs Committee have previously expressed concerns about the appointment of a member to Afghanistan’s trust fund by the United States to oversee the fund in Switzerland. A member of Congress stated that Shah Mohammad Mehrabi was expelled from U.S. institutions on charges of falsifying doctoral documents. He described Tom West, America’s special representative for Afghanistan affairs, comments about Mr. Mehrabi as “common gossip in Washington, D.C., and humorous.”
During the past year, significant concerns have emerged regarding Afghanistan’s trust fund operations in Switzerland. One issue revolves around the appointment of Shah Mohammad Mehrabi, a member of the central bank’s high council under Taliban control, to Afghanistan’s trust fund in Switzerland. According to these concerns, Mr. Mehrabi represents the Taliban regime and directly receives orders from the Taliban leader for the central bank.
Furthermore, it is said that over the past year, members of this fund have not provided any accountability to the people of Afghanistan, and there is no clear mechanism in place to compel members of this fund to be accountable for the assets of the people of Afghanistan. According to these statements, some members of Afghanistan’s trust fund have spoken sporadically in the media, and no criteria for the activities of this fund have been considered.