Financial Crime World

Assessment of Syria’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Regime

Key Findings

  • Progress in AML/CTF Regulations: While Syria has made progress in implementing AML/CTF regulations, there is still a lack of transparency in state-owned banks, which are vulnerable to political influence.
  • Government’s Willingness to Address AML/CTF Issues: The Government of Syria lacks the will to address AML/CTF issues in the largest part of the banking sector, including state-owned banks.
  • Vulnerability of Non-Bank Financial Institutions and Black Market: Non-bank financial institutions and the black market continue to be vulnerable to money laundering and terrorist financing.
  • Independence of Central Bank: The Central Bank should be granted independence and supervisory authority over the entire financial sector to build confidence in Syria’s intentions.
  • Capacity of General Directorate of Customs: The General Directorate of Customs lacks staff and financial resources, which hinders its ability to effectively handle smuggling issues, including trade-based money laundering and cash-based smuggling.
  • International Cooperation: Syria has signed cooperation agreements with Turkey and Ukraine, but it is still unclear if there are any action resulting from enforcement.

Challenges and Recommendations

  • Address the lack of transparency in state-owned banks and grant them independence to reduce vulnerability to political influence.
  • Strengthen the ability of the Central Bank to supervise the entire financial sector.
  • Enhance the capacity of the General Directorate of Customs to handle smuggling issues effectively.
  • Ensure that international cooperation agreements with Turkey and Ukraine are enforced.

Status of Syria’s AML/CTF Regime

Syria is a member of the Middle East and North Africa Financial Action Task Force (MENAFATF), but it remains on the US Department of State list of jurisdictions identified to be supporters of International Terrorism. While progress has been made in implementing AML/CTF regulations, there are still significant issues that need to be addressed.