Syria’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Regime: Key Findings and Recommendations

Introduction

The report provides an in-depth analysis of Syria’s AML/CTF regime, highlighting key points of progress and vulnerability.

Key Points of Vulnerability

• State-owned banks lack transparency: These institutions are vulnerable to political influence, indicating a lack of will to address AML/CTF in this sector.
• Non-bank financial institutions and the black market remain vulnerable: Money laundering and terrorist financing continue to pose significant risks.
• General Directorate of Customs lacks resources: Insufficient staff and financial resources hinder effective handling of smuggling problems.

International Cooperation

• Syria is a member of the Egmont Group of Financial Intelligence Units (FIUs).
• Cooperation agreements have been signed with Turkey and Ukraine’s FIUs.
• Syria is a party to the 1988 UN Drug Convention but has not ratified other important conventions.

Government Will and Recommendations

• Lack of political will to punish terrorist financing or address corruption: The government must take steps to ensure accountability at high levels of government and business.
• Recommendations:
  • Grant independence and supervisory authority to the Central Bank over the entire banking sector.
  • Strengthen and train the FIU, granting it a degree of independence.
  • Modify AML/CTF legislation and enabling regulations to adhere to international standards.
  • Become a party to the UN Convention against Transnational Organized Crime and the UN Convention against Corruption.

Conclusion

The report highlights significant vulnerabilities in Syria’s AML/CTF regime, including lack of transparency, corruption, and political influence. Addressing these issues is crucial for maintaining regional security and stability.