Financial Crime World

Due Diligence Procedures for Legal Characters Opening Accounts with a Bank in Syria

Principles and Criteria of Due Diligence

When conducting due diligence on legal characters (businesses) opening accounts with a bank in Syria, the following key principles and criteria must be observed:

  • Verifying the identity of authorized signers
  • Obtaining official documents, such as licenses and permits
  • Verifying business details, including name, registration number, and address

The following documents are typically required from legal characters opening accounts with a bank in Syria:

  • Registration certificate or commercial registration
  • License to practice a profession (if applicable)
  • Articles of Association and Foundation Contract
  • Annual and semi-annual reports from auditors or audited balance sheets

Procedures for Conducting Due Diligence on Authorized Signers

To verify the identity of authorized signers, banks in Syria may conduct the following procedures:

  • Verifying the address through field visits and contacting relevant authorities
  • Obtaining documents, such as bills for water, electricity, and telephone services
  • Confirming the presence of the legal character at its registered address

For high-risk legal characters, banks in Syria may apply extra principles of due diligence, including:

  • Paying extra attention to opening accounts and registering information related to labor sector activities
  • Constantly monitoring high-risk accounts
  • Obtaining additional information, such as:
    • Proof of permanent address through field visits
    • Recommendations from well-known customers or professionals in the industry
    • Documents showing the source of wealth and income

The following types of legal characters are considered high-risk in Syria:

  • Charity societies, clubs, and other societies
  • Politicians and public employees
  • Correspondent banks
  • Exchange companies and transferring agents
  • Goldsmiths, jewelers, and precious stones dealers
  • Travel and cargo agents
  • Merchants of ruins and artistic fairs
  • Real estate agents
  • Owners of businesses with intensive monetary activity (e.g., restaurants, petrol stations)
  • Lawyers, chartered accountants, and other professionals who carry out certain high-risk activities on behalf of their principals

Please note that this document is likely specific to the banking regulations in Syria and may not be applicable or relevant in other jurisdictions.