Western Union resumes money transfers to Afghanistan

• We understand the urgent needs of our customers and their families and are committed to supporting them, says Western Union.
• Remittances from Afghans living abroad are crucial for the impoverished country's economy.
• The IMF announced shortly after the Taliban's takeover that it would suspend its assistance to the country.

Western Union would resume its money transfer service to Afghanistan as the Taliban deal with enormous economic hurdles following their takeover last month, announced the American multinational financial services company on Thursday.

The US Treasury Department has told financial institutions that they may process personal remittances to Afghanistan, a Treasury spokesperson said.

"Western Union is pleased to share that it is resuming its money transfer services into Afghanistan, starting September 2, so that our customers can once again send money and support their loved ones at this time," a Western Union spokesperson said.

"We understand the urgent needs of our customers and their families and are committed to supporting them," the spokesperson said, adding that Western Union would waive transfer fees from September 3 through 17.

Remittances from Afghans living abroad are crucial for the impoverished country's economy and amounted to almost $789 million last year, according to the World Bank.

The Washington-based development bank last week announced it would suspend aid to the country, saying it was "deeply concerned about the situation in Afghanistan and the impact on the country's development prospects, especially for women."

Western Union, the world's largest money transfer firm, and Moneygram both suspended such services after the Taliban takeover, shutting off a major source of funds that many families rely on to pay for food.

The IMF announced shortly after the Taliban's takeover that it would suspend its assistance to the country, citing uncertainty surrounding its leadership.