Biden blocked Afghan assets in U.S. banks

Biden blocked Afghan assets in U.S. banks

U.S. President Joe Biden signed an executive order to block $7 billion in assets of the central bank of Afghanistan stored in U.S. banks.

The Afghan assets held in U.S. bank accounts will be transferred to a single special trust fund at the Federal Reserve Bank of New York. It is supposed that half of these funds will be used later on for the humanitarian needs of the Afghan people after the relevant court decision.

American authorities will require at least several months before the funds intended for humanitarian needs will be transferred to the trust fund. Meanwhile, the remaining $3.5 billion will remain in the U.S. and will be used to compensate the families of victims of terrorist attacks, including the Sept. 11, 2001, attacks.

Many victims of terrorism in the U.S., including relatives of victims of the Sept. 11, 2001 attacks, have sued and are seeking payment from the assets of the Central Bank of Afghanistan in federal court. More than $3.5 billion of those assets will remain in the U.S. and will be the subject of ongoing litigation involving American victims of terrorism. Plaintiffs will have a full opportunity to state their claims in court.

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