Syria’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Regime: Key Findings

The report on Syria’s AML/CFT regime highlights several areas of concern that need to be addressed by the Syrian government. Here are some key points:

Vulnerabilities in the Financial Sector

• Lack of Transparency: State-owned banks in Syria lack transparency, making them vulnerable to political influence and money laundering.
• Non-Bank Financial Institutions: Non-bank financial institutions in Syria are also vulnerable to money laundering and terrorist financing.

Black Market Vulnerabilities

• The black market in Syria continues to be vulnerable to money laundering and terrorist financing.

Limited Progress

• Despite some progress, the Syrian government’s lack of political will to address AML/CFT in the largest part of the banking sector is a significant obstacle.

Recommendations for Improvement

• Central Bank Independence: To build confidence in Syria’s intentions, the central bank should be granted independence and supervisory authority over the entire sector.
• Strengthening the Financial Intelligence Unit (FIU): The Syrian government should strengthen and train its FIU to enhance the implementation of AML/CFT legislation and private sector internal controls.
• AML/CFT Legislation: Syria’s AML/CFT legislation and enabling regulations should be modified to adhere to international standards.

International Cooperation

• Syria is a member of the Egmont Group of FIUs and has signed cooperation agreements with Turkey and Ukraine, but it lacks a mutual legal assistance agreement with the US.
• It is ranked 147 out of 180 countries on Transparency International’s Corruption Perception Index in 2008.

These findings highlight the need for the Syrian government to take concrete steps to improve its AML/CFT regime and address the vulnerabilities identified.