US Treasury allows dealings with Syrian commercial banks

The Financial Crimes Enforcement Network (FinCEN), an affiliate of the US Treasury Department, has issued an exceptional exemption allowing financial institutions to deal with the Commercial Bank of Syria, open accounts, and transfer funds to and from Syria.

In a statement published by the Syria TV website, the network said that this exemption "comes within the framework of US efforts to support economic stability in Syria, following President Trump's announcement to lift sanctions on Syria and allow for the expansion of economic activities in the country."

Under the exemption, US financial institutions are permitted to open and maintain correspondent accounts with the Commercial Bank of Syria, subject to compliance with US laws against money laundering and terrorist financing.

According to the Syria TV website, the exemption includes key conditions, including full compliance with anti-money laundering programs, enhanced due diligence procedures, compliance with other US sanctions, submission of periodic reports upon request, and ongoing review of the financial institutions' internal procedures.

The exemption also stipulates that sanctioned entities or individuals (including those associated with Russia, Iran, North Korea, and the regime of ousted President Bashar al-Assad) do not benefit from these transactions. The Financial Crimes Enforcement Network statement indicated that "this decision is expected to significantly facilitate financial transfers to Syria, particularly personal transfers from expatriates to their families, through formal, regulated banking channels."

The exemption allows US banks to conduct direct and legal transactions with the Commercial Bank of Syria, enhancing the flow of foreign currency to Syria and reducing reliance on the black market or informal remittance networks that may be used for illicit purposes.

The exemption, according to the statement, contributes to "supporting efforts to rebuild the Syrian economy by facilitating legitimate investments, financial services, and economic infrastructure, in line with US foreign policy interests."

In return, the exemption stipulates that "financial institutions must ensure that all transactions comply with strict US laws and regulations to ensure that these facilities are not used to finance terrorist activities or human rights violations."

The Financial Crimes Enforcement Network emphasized that this exemption represents "an important first step toward implementing the new US policy toward Syria and provides a real opportunity to support the Syrian people during the reconstruction phase, provided the highest levels of legal compliance and financial transparency are maintained."