US Treasury Issues New General License to Facilitate Transactions in Afghanistan

Background

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued a new general license, Afghanistan-related General License 20 (GL 20), aimed at facilitating transactions and activities that support basic human needs in Afghanistan.

Scope of GL 20

GL 20 authorizes all transactions involving Afghanistan or governing institutions in Afghanistan that would otherwise be prohibited by US sanctions on the Taliban or the Haqqani Network, subject to certain conditions. The license also permits:

• Payment of taxes, fees, or import duties
• Purchase of permits, licenses, or public utility services
• Transactions necessary to support basic human needs in Afghanistan, including:
  • Activities that sustain essential social services such as health and education
  • Preservation of essential community systems
  • Promotion of livelihoods and social cohesion

However, GL 20 does not authorize:

• Financial transfers to the Taliban, the Haqqani Network, or any entity owned by them
• Transfers of luxury items or services to these entities

Purpose of GL 20

According to a Treasury official, “Given the widespread humanitarian and economic crisis facing Afghanistan, we have issued this general license to ensure that US sanctions do not stand in the way of transactions and activities that support the basic human needs of the people in Afghanistan.” This license aims to provide clarity on what activities are authorized and to mitigate further worsening of Afghanistan’s economic and humanitarian crisis.

Authorized Activities

GL 20 also authorizes commercial transactions involving Afghanistan, including:

• Imports from and exports to the country
• Dealings with state-owned or controlled companies and enterprises in Afghanistan

The US government has recognized that Afghanistan is facing a critical situation, and this new general license aims to provide clarity to financial institutions, nongovernmental organizations, international organizations, and private sector entities on what activities are authorized.

FAQs and Guidance

The Treasury Department has released FAQs to provide further guidance on the scope of GL 20. A Treasury official stated, “We hope that this general license will help facilitate the flow of critical goods and services into Afghanistan and support the Afghan people in these difficult times.”