DAMASCUS, 3 May 2005 — Syria, facing pressure from the United States, has brought in new banking laws to crack down on money laundering and terror funding, the official SANA news agency reported yesterday.
“Syria wants to ensure that its banking system is in line with international regulations,” Finance Minister Mohammad Al-Hussein was quoted as saying. Washington has raised concerns over the alleged involvement of the Commercial Bank of Syria in money-laundering operations and the financing of terrorism, threatening sanctions under the US Patriot Act passed after the Sept. 11 attacks of 2001.
Syria itself has been under US economic sanctions since May on charges of supporting terrorism and working to destabilize Iraq.
All banks operating in Syria and its free trade zones will come under the new banking laws decreed by President Bashar Assad, SANA said. A new watchdog within the central bank will have powers to override banking confidentiality where infractions are suspected.
“All financial institutions will be required to cooperate with orders to freeze accounts or reveal details of transactions,” according to a text carried by the news agency.
The law also authorizes the exchange of information between the new watchdog and its counterparts overseas.
Hussein said the regulations were aimed at making the Syrian system more transparent and to “build bridges of confidence” with its economic and financial partners.
In recent years, Syria has moved very gradually to open up its state-controlled economy.
