Financial Crime World

Humanitarian Funding in Syria: Mitigating Risk through Effective Management

Introduction

Sending humanitarian funds into Syria can be a complex and high-risk endeavor. The collapse of the banking system in non-government controlled areas and strict sanctions imposed by various countries have significantly limited available channels for funding.

Key Challenges

  • Limited Banking Channels: The collapse of the banking system in non-government controlled areas has reduced the number of available custodians and channels for funds coming into Syria.
  • Sanctions and Restrictions: US, EU, and other countries’ sanctions on Syria’s government-owned banks have further restricted access to funds. This makes it difficult for organizations to structure their humanitarian activities to comply with these regulations.

Important Considerations

When sending humanitarian funds into Syria, it is essential to consider the following:

  • Compliance with Sanctions: Humanitarian operations in non-Syrian government-controlled areas are subject to broad-ranging sanctions imposed by UN Security Council Resolutions 1267 (1999) and subsequent resolutions concerning ISIL (Da’esh), Al-Qaida, and associated individuals.
  • Risk Management Principles: Organizations must employ effective risk management principles to mitigate potential risks and ensure compliance with regulations.

Effective Risk Management Strategies

To minimize risks and ensure compliance, consider the following strategies:

  • Conduct thorough research: Understand the local context, including the current banking system, sanctions, and regulatory requirements.
  • Develop a comprehensive plan: Structure humanitarian activities in accordance with sanctions and regulatory requirements.
  • Collaborate with local stakeholders: Work closely with local organizations and authorities to ensure compliance and minimize risks.

By following these strategies and understanding the key challenges and considerations, organizations can effectively manage risk and ensure that their humanitarian funds are used efficiently and responsibly in Syria.