Sanctions On Afghanistan: Exploring The Impact And Implications

Afghanistan has been subject to sanctions from the United States, the United Kingdom, and the United Nations. The sanctions were initially imposed in 1999 in response to the actions of the Taliban, including providing sanctuary and training for international terrorist groups. The sanctions were tightened after the September 11 attacks in 2001 and further intensified after the fall of Kabul in 2021, with the US freezing the Afghan government reserves held in US bank accounts. The sanctions have had a devastating impact on the country, causing widespread hunger and a humanitarian crisis.

The US has frozen over $7 billion of Afghanistan's assets

Afghanistan has been subjected to sanctions by the United Nations and the United States. The US sanctions were tightened against the Taliban under Executive Order 13224 after the 9/11 attacks in 2001. In August 2021, the Taliban seized control of Afghanistan, and the US froze most of the country's central bank's assets—nearly $10 billion in total. This included over $7 billion of the country's assets held at the US Federal Reserve.

The freezing of these assets has had a devastating impact on Afghanistan's economy and the lives of its people. The assets confiscated are in US dollars, which are needed to maintain a stable financial system and economy. The loss of these reserves has resulted in cash shortages, the collapse of the Afghan currency, and a crippling of the country's banks. This, in turn, has led to soaring inflation, restrictions on cash withdrawals, and difficulties in accessing funds for businesses and individuals.

The Biden administration initially refused to release the frozen funds, citing concerns about the Taliban's access to the money and the lack of safeguards to prevent diversion to terrorist groups. However, facing pressure from the international community and amid a worsening humanitarian crisis in Afghanistan, the administration later decided to unfreeze the assets.

In February 2022, President Biden signed an executive order to seize the Afghan assets and move half to a fund designated for humanitarian aid for Afghanistan. The other half was to remain in the US to potentially satisfy terrorism-related lawsuits against the Taliban, including by families of the victims of the 9/11 attacks. This decision sparked outrage from rights organizations and Afghan advocates, who argued that it would worsen the humanitarian crisis in the country.

The US established a foundation, called the Afghan Fund and based in Switzerland, to manage the $3.5 billion designated for humanitarian aid. The fund will help stabilize Afghanistan's economy and pay for critical imports without benefiting the Taliban directly. However, the Taliban has claimed that the money belongs to them as they are now the country's government and has demanded the entire amount be unfrozen and returned to the Afghan central bank.

The impact of sanctions on the Afghan people

Sanctions imposed on Afghanistan have had a devastating impact on the country's population, with the United Nations (UN) warning of an escalating humanitarian crisis. The sanctions, primarily aimed at the Taliban, have resulted in severe food insecurity, economic collapse, and a deterioration of essential services, causing immense hardship for millions of Afghans.

Economic Impact

The most destructive sanction has been the freezing of over $7 billion in international reserves belonging to Afghanistan's central bank, Da Afghanistan Bank. These assets are crucial for importing essential goods such as food and medicine, as well as maintaining financial stability. The loss of these reserves has led to a depreciation of the Afghan currency, cash shortages, and the collapse of Afghan banks, causing hyperinflation and making basic goods unaffordable for many.

Humanitarian Crisis

The economic fallout from the sanctions has triggered a humanitarian crisis, with 22.8 million Afghans facing acute food insecurity, according to projections. This situation is exacerbated by the disruption to humanitarian aid distribution due to challenges in the banking system and the reluctance of international banks and aid groups to transfer funds to the country. The World Bank reported a 40% annual increase in food prices since August, further pushing food out of reach for many poor Afghans.

Healthcare

The healthcare system in Afghanistan is also suffering due to the sanctions. The lack of access to funds has resulted in shortages of medicine and essential supplies, endangering the lives of Afghans, especially children suffering from severe acute malnutrition. The COVID-19 response has been hindered, and the wider social fabric, heavily reliant on foreign assistance, is at risk of collapse.

Human Rights

The sanctions have also raised concerns about human rights violations. By freezing assets, individuals have been denied access to private funds for basic needs, raising questions about the interference with fundamental rights and the lack of a definite end date for the sanctions. The UN and humanitarian organizations argue that assistance should be administered in a non-political manner, prioritizing the needs of the civilian population.

Future Considerations

To alleviate the humanitarian crisis, there have been calls for the strategic relief of some US and UN sanctions to facilitate political dialogue with the Taliban. Establishing safeguarded humanitarian banking channels, exempt from sanctions, is also crucial to ensuring the continued flow of essential goods and humanitarian aid. Broader standing exemptions in sanctions regimes and closer input from public health and humanitarian professionals in their design are recommended to prevent disproportionate harm to civilians.

In conclusion, the sanctions on Afghanistan have had a devastating impact on the country's population, causing economic collapse, severe food insecurity, and a deterioration of essential services. The future holds further uncertainty for Afghans as the country navigates the complex web of overlapping sanctions and attempts to recover from the collective punishment inflicted on its people.

The UK's Afghanistan (Sanctions) (EU Exit) Regulations 2020

The Afghanistan (Sanctions) (EU Exit) Regulations 2020 came into force on 31 December 2020. The regulations ensure that the UK continues to meet its obligations under the United Nations sanctions regime relating to Afghanistan.

The regulations include:

• An asset freeze on designated persons
• Making funds and economic resources available to designated persons
• Circumventing prohibitions
• Export of military goods
• Brokering services: non-UK activity relating to military goods and military technology
• Enabling or facilitating the conduct of armed hostilities
• Exceptions and licences
• Information and records
• Maritime enforcement

The Afghanistan (Sanctions) (EU Exit) (Amendment) Regulations 2022 amended the 2020 Regulations to facilitate humanitarian assistance and other activities that support basic human needs in Afghanistan. This amendment reflects modifications to the United Kingdom's obligations under United Nations Security Council Resolution 2255 (2015), which was adopted on 21 December 2015 and modified by Security Council Resolution 2615 (2021) on 22 December 2021.

The UN's Resolution 1267

The UN Security Council Resolution 1267 was adopted on 15 October 1999, in response to the Taliban's capture of the Consulate-General of the Islamic Republic of Iran, and the murder of Iranian diplomats and a journalist in Mazar-e-Sharif. The resolution also addressed the Taliban's continued provision of safe haven to Osama bin Laden, allowing him to operate a network of terrorist training camps from Taliban-controlled territory.

The resolution imposed a series of travel and financial sanctions on members of the Taliban-controlled government of Afghanistan. All countries were required to deny flight permission to all Taliban-operated aircraft and freeze all financial resources that could benefit the Taliban. The resolution further demanded that the Taliban turn over Osama bin Laden to appropriate authorities without delay.

The enforcement of Resolution 1267 fell upon the United Nations member states, who were encouraged to introduce domestic legislation criminalising the financing of terrorism and associated money laundering. The resolution also established a Sanctions Monitoring Committee, known as the Al-Qaeda and Taliban Sanctions Committee, composed of the five permanent members of the United Nations Security Council, including China, France, the United Kingdom, the United States, and Russia, along with the ten other Security Council rotating members.

The Committee was mandated to oversee the implementation of the sanctions, designate individuals and entities who meet the listing criteria, consider requests for exemptions and removals from the sanctions list, conduct reviews of the entries, examine reports presented by the Monitoring Team, and report annually to the Security Council.

The original mandate of Resolution 1267 changed over time, with the measures becoming more targeted rather than blanket sanctions. The nature of the sanctions was also modified to target specific individuals, who were placed on a list at the request of member states.

The UN Security Council has relied on cooperation with other global organisations, such as Interpol and the Financial Action Task Force, to aid in identifying and monitoring individuals financially linked to terrorist organisations. The resolution has been credited with promoting international cooperation in combating terrorism and strengthening anti-terrorism measures in intergovernmental organisations.

The US's Executive Order 13224

Executive Order 13224 was issued by U.S. President George W. Bush on September 23, 2001, as a response to the attacks on September 11, 2001. It has been renewed annually since then.

The Order provides a means to disrupt the financial support network for terrorists and terrorist organisations. It authorises the U.S. Department of State, in consultation with the U.S. Departments of the Treasury and Justice, to designate and block the assets of foreign individuals and entities that commit, or pose a significant risk of committing, acts of terrorism.

The Order also authorises the U.S. Department of the Treasury, in consultation with the U.S. Departments of State and Justice, to designate and block the assets of individuals and entities that provide support, services, or assistance to terrorists and terrorist organisations, as well as their subsidiaries, front organisations, agents, and associates.

The Order invokes a law that allows the President to bar transactions involving donations, food, clothing, and medicine, and other articles "intended to be used to relieve human suffering", when the President finds that donations would "seriously impair his ability to deal with any national emergency", are coerced, or would endanger U.S. armed forces.

The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals. It maintains a list of individuals and organisations identified by Executive Order 13224.

The Order provides authority for the designation and blocking of assets of additional individuals or entities, defined as partnerships, associations, corporations, or other organisations, groups, or subgroups. The Secretary of State, in consultation with the Secretary of the Treasury and the Attorney General, may designate foreign individuals or entities that are deemed to have committed, or pose a significant risk of committing, acts of terrorism that threaten U.S. security, foreign policy, or the economy.

The Secretary of the Treasury, in consultation with the Secretary of State and the Attorney General, may designate individuals or entities that are determined to be owned or controlled by, or act on behalf of, an individual or entity listed in the Order, or by persons determined to be subject to specific subsections of the Order. They may also designate individuals or entities that assist in, sponsor, or provide financial, material, or technological support for acts of terrorism, or individuals or entities designated in the Order.

The Order defines "terrorism" as an activity that involves a violent act or an act dangerous to human life, property, or infrastructure, and that appears to be intended to intimidate or coerce a civilian population, influence government policy by intimidation or coercion, or affect the conduct of a government by mass destruction, assassination, kidnapping, or hostage-taking.

The effects of designation under the Order include blocking all property and interests in property of designated individuals or entities that are in the U.S. or come within U.S. possession or control. It prohibits transactions or dealings by U.S. persons or within the U.S. in blocked property or interests, including contributions of funds, goods, or services to designated individuals or entities.

Civil and criminal penalties may be assessed for violations of the Order, which include deterring donations or contributions to designated individuals or entities, heightening public awareness of individuals or entities linked to terrorism, and disrupting terrorist networks.

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