Syrian Arab Republic: A Haven for Financial Crimes?

Syria, one of the most volatile and war-torn countries in the Middle East, has gained a reputation as a haven for financial crimes. The country’s intricate political landscape, porous regulatory framework, and well-established money laundering networks have drawn in criminals from around the world. In this article, we’ll discuss the various types of financial crimes that have been reported in Syria, the reasons behind its attraction to criminals, and the government’s efforts to combat these illicit activities.

Types of Financial Crimes in Syria

Money laundering

Money laundering is the most prevalent financial crime in Syria. The country’s porous banking sector and extensive informal financial networks make it an easy place for criminals to move funds in and out of the country. Syrian banks have reportedly been used to facilitate money laundering for terrorist organizations, such as Hezbollah, and criminal networks from countries including Russia and Europe.

Fraud

Fraud is another common financial crime in Syria. Companies and individuals have reportedly engaged in:

• Accounting fraud
• Securities fraud
• Insider trading

They have taken advantage of Syria’s complex regulatory environment to hide their illegal activities.

Smuggling

Smuggling is a significant issue in Syria. The country’s long borders with Turkey, Iraq, Lebanon, Jordan, and Israel provide ample opportunities for criminals to transport goods and people illegally. Syria’s porous border controls and lack of international cooperation make it an attractive destination for trafficking activities.

Terrorist financing

Terrorist financing is a growing concern in Syria. The country’s proximity to various terrorist groups, including Hezbollah and ISIS, has made it a hub for financing terrorism. Syrian banks have reportedly been used to facilitate transactions for these groups, taking advantage of the country’s weak regulatory framework and lack of international cooperation.

Reasons for Syria’s Attraction to Financial Crimes

1. Complex political landscape: The volatile political situation in Syria has created an environment that is ripe for financial crimes to thrive.
2. Porous regulatory framework: Syria’s weak regulatory framework provides little protection against financial crimes.
3. Lack of international cooperation: Syria’s lack of cooperation with international efforts to combat financial crimes makes it easier for criminals to operate within the country.

Government’s Efforts to Combat Financial Crimes

The Syrian government has taken some steps to address financial crimes, but critics argue that these measures are inadequate and often used for political purposes rather than to combat crime. For example, the Central Bank of Syria has issued regulations to combat money laundering and terrorist financing, but these regulations have not been effectively enforced.

International Cooperation: The Key to Combating Financial Crimes in Syria

International cooperation is crucial in combatting financial crimes in Syria. However, the Syrian government’s relations with various countries and organizations, including Russia and Iran, have hindered international efforts to address these issues.

Conclusion

Syria’s complex political landscape, porous regulatory framework, and extensive money laundering networks make it an attractive destination for various types of financial crimes. The country’s lack of international cooperation and weak regulatory measures make it challenging to combat these illicit activities effectively. It remains to be seen how the Syrian government and the international community will address these issues in the coming years.