Financial Crime World

Title: US Treasury Clarifies Humanitarian Aid Financing in Syria Amid Sanctions

Washington D.C., August 8, 2023

The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued a communiqué to provide guidance on the provision of humanitarian assistance to Syria while adhering to US sanctions. The following outlines the key authorizations, exemptions, and guidelines.

Syrian Sanctions Regulations

  1. Humanitarian-related activities are permitted under various Syrian Sanctions Regulations, which include:
    • NGO Activities ( Subsection 516)
    • Transactions for international organizations (IOs), including the United Nations ( Subsection 513)
    • US Government official business transactions ( Subsection 522)
    • Certain economic activity in non-regime held areas (General License 22)
    • Noncommercial, personal remittances ( Subsection 512)

Donations and Fundraising for Humanitarian Projects in Syria

  1. US persons are authorized to:
    • Donate funds to and raise funds on behalf of US and third-country NGOs
    • Conduct crowdfunding campaigns, provided donations are remitted to authorized NGOs for distribution within the country

NGOs’ Role in Providing Humanitarian Aid in Syria

  1. NGOs may engage in authorized humanitarian projects:

    • In all parts of Syria, including areas controlled by the Government of Syria
    • In non-regime held areas, where they may conduct non-commercial activities in support of humanitarian projects, provided the intended beneficiary is not blocked under relevant counterterrorism authorities (General License 22)

  2. Exporting or Reexporting Goods to Syria: Most food and medicine do not require a Bureau of Industry and Security (BIS) license for export to Syria. US companies must consult with BIS regarding items requiring a license.

US Companies and NGOs Working Together to Provide Humanitarian Assistance

  1. Companies may provide services to NGOs supporting authorized humanitarian activities in Syria, subject to applicable regulatory requirements.

Petroleum Products for NGOs

  1. The Syria NGO general license permits the purchase of refined petroleum products of Syrian origin for use in humanitarian projects in the country.

Humanitarian Projects by Foreign Governments and Entities

  1. Non-US persons are not exposed to US sanctions when engaging in or facilitating humanitarian transactions authorized under OFAC guidelines:
    • Beyond humanitarian aid, General License 22 also authorizes transactions ordinarily incident and necessary in certain sectors for foreign government partners and commercial entities in certain non-regime held areas.

The Caesar Syria Civilian Protection Act

  1. OFAC clarifies that non-US persons, including NGOs and financial institutions, are not considered significant for US sanctions determinations under the Caesar Act while engaging in authorized activities under Syrian Sanctions Regulations.

The OFAC communiqué advises on applying for specific licenses and contacting the agency for guidance on humanitarian activities.