Western Union Resumes Remittance Services To Afghanistan

The Western Union Company WU has resumed its money transfer services to Afghanistan, stating that its decision coincided with the Biden administration's decision to allow humanitarian activity to continue in the Taliban-controlled country.

What Happened: Western Union suspended its services in Afghanistan two weeks ago after the Taliban seized control of the capital city of Kabul. However, the company has decided to resume operations following the gradual reopening of Afghanistan’s banks and the signaling from the White House that humanitarian assistance to the country would not be prevented.

“Much of our business involving Afghanistan is low-value family and support remittances that support basic needs of the people there, so that’s the grounding that we have and why we want to reopen our business,” said Jean Claude Farah, Western Union’s president in Asia, Europe, the Middle East and Africa, in an interview with Reuters.

Related Link: Most Americans Blame Biden For Mismanaging Afghanistan Crisis: Poll

Why It Matters: Although the Taliban is cited as a terrorist group by the U.S. government, Western Union said that it had permission to enable remittances to Afghanistan.

“We’ve engaged with the U.S. government, which has conveyed that allowing humanitarian activities, including remittances, to continue are consistent with U.S. policy,” Farah said. “We are continuing to engage with the U.S. government and others to understand their policies and what type of longer-term regulatory framework will be put in place as it relates to the Taliban.”

Farah added that the company received assurances from Afghanistan’s banks that they had enough funds in both the local currency and in U.S. dollars to pay the remittance recipients.

The World Bank estimated that overseas remittances to Afghanistan totaled $789 million in 2020, which comprised approximately 4% of the country’s gross domestic product.

Photo: Richard Allaway / Flickr Creative Commons.