Federal Council signs agreement on privileges and immunities with the foundation “Fund for the Afghan People”

The agreement on privileges and immunities between the Federal Council and the Afghan Fund, approved by the Federal Council on 15 December 2023, entered into force on February 1, 2024 after it was signed by both parties. The conclusion of this agreement is based on the Host State Act and enables the Afghan Fund's independence and functionality of the Foundation to be guaranteed and its assets to be protected and preserved.

Established in September 2022 as a foundation under Swiss law, the Afghan Fund is tasked with the secure preservation of assets totaling approximately USD 3.6 billion for the benefit of the Afghan people, thereby securing their future prospects. The fund's board of trustees can authorize specific disbursements for the benefit of the Afghan people, including payments for critical imports, such as energy, that meet the Afghan people's basic needs and contribute to the country's economic stability. The Afghan Fund is an international instrument aimed at helping to address Afghanistan's economic crisis. Its medium and long-term goal is to return the remaining assets to the central bank of Afghanistan.

In the interests of the Afghan people

The board of trustees of the Afghan Fund is responsible for determining the specific allocation of the funds. It ensures that the assets are utilised in a manner that benefits the people of Afghanistan, while also adhering to all relevant sanctions regimes. The board also ensures that funds are only transferred to the central bank of Afghanistan if the bank can demonstrate its independence from political influence. Furthermore, the central bank of Afghanistan must guarantee that it has taken appropriate measures to combat money laundering and terrorist financing.

As a member of the board of trustees since the establishment of the foundation, Switzerland plays a key role in ensuring that the foundation board implements correctly the goals of the foundation. The conclusion of the agreement on privileges and immunities bolsters the Afghan Fund's location in Geneva, strengthens the city's existing center of expertise, and fosters essential collaboration among various stakeholders in this field.

Address for enquiries:

FDFA Communication
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CH-3003 Bern, Switzerland
Tel. Press service: +41 58 460 55 55
E-mail: kommunikation@eda.admin.ch
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Publisher:

Federal Department of Foreign Affairs