President Joe Biden is reportedly set to take extraordinary executive action which would see a large amount of Afghan funds, frozen after the Taliban takeover of the country.
As The Hill reports:
President Biden signed an executive order on Friday intended to free up $7 billion in assets from Afghanistan’s central bank being held in the U.S., half of which could go to humanitarian assistance in Afghanistan and the other half for compensation to the families of 9/11 victims.
The White House said in a release that the executive order is “designed to provide a path for the funds to reach the people of Afghanistan while keeping them out of the hands of the Taliban and malicious actors.”
In signing the executive order, Biden is blocking property of Afghanistan’s central bank that is held in the U.S. and requiring American financial institutions to transfer the assets into a consolidated account at the Federal Reserve Bank of New York.
The effort is unusual, as it involves money held by a foreign government on U.S. soil. It is likely to be the subject of complex litigation.
A senior administration official reportedly told The Hill that a federal court would ultimately have to issue a ruling in order for the 9/11 victim’s families to be able to receive the 3.5 billion dollars currently being held by the U.S. Government.