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In a bold move to tighten control over financial activities linked to the ousted regime of former President Bashar al-Assad, Syria’s central bank has ordered commercial banks to freeze accounts tied to individuals and companies associated with the previous government. This directive reflects efforts by the new administration to trace and restrict financial flows connected to the Assad regime.
Syria Orders to Freeze Accounts Issued
On Thursday, Syria’s central bank issued a circular instructing commercial banks to “freeze all bank accounts of companies and individuals linked to the defunct regime.” Banks have been asked to provide details of all frozen accounts to the central bank within three working days.
The directive specifically targets the Katerji Group, a prominent entity involved in the Syrian oil trade, run by brothers Baraa and Hussam Katerji.
Targeting the Katerji Group
The Katerji Group gained prominence during the Syrian civil war, with its owners maintaining close ties to the Assad family. The group and its leaders have faced international scrutiny for their activities.
Baraa Katerji was killed in July in a suspected Israeli airstrike near the Lebanese border. While Israel did not comment on the strike, it drew significant attention to the group. Hussam Katerji, meanwhile, has been under U.S. sanctions for “facilitating petroleum shipments and financing to the Syrian Regime,” according to the U.S. Treasury.
Efforts to reach Hussam Katerji for comment were unsuccessful.
Syria Faces Challenges in Implementation
While the directive aims to restrict financial access for regime-linked individuals and companies, implementing it may be difficult. Many businessmen associated with the Assad regime are known to have opened accounts under other names or used front companies to conceal their financial activities.
A banker, speaking anonymously due to the sensitivity of the matter, noted that these tactics would complicate the enforcement of the central bank’s orders.
Stronger Measures by Syria’s Interim Government
Since ousting Assad on December 8, Islamist rebels have formed an interim government that has been working to dismantle the financial networks of the former regime.
The new Syrian administration had already implemented a general freeze on bank accounts after taking power. However, individuals were able to challenge these freezes, allowing some funds to be withdrawn or transferred.
The latest measures are more focused and designed to close loopholes. “The new measures are intended to be more stringent and targeted and help authorities gather information on regime-linked finances,” said a Syrian official familiar with the situation.
This initiative is part of broader efforts by the interim government to establish transparency and accountability in Syria’s financial system. By freezing accounts and tracing financial flows, the administration aims to cut off resources that could potentially be used to destabilize the region or fund remnants of the Assad regime.
