US Freezes Taliban Assets Held at Federal Reserve; Supreme Court Review Sought

In 2021, the U.S. Treasury froze approximately $7 billion held by the Da Afghanistan Bank at the Federal Reserve Bank of New York, funds originating from Afghanistan. While victims have won judgments against the Taliban totaling $17 billion, a court decision ruled that $3.5 billion cannot be given to victims and families. Attorney General Jeff Jackson and 30 other attorneys general filed an amicus brief asking the supreme court to review this appellate court decision.

The legal challenge concerns the use of frozen assets, which the Terrorism Risk Insurance Act allows for paying judgments against terrorist parties. The appellate court argued the funds could not be used because the Taliban had not installed their own governors at the bank when the assets were frozen.