AML Compliance Guidelines: Syria

AML Regulatory Body of Syria

The regulatory body that establishes AML regulations in Syria is:

The Commission for Combating Money Laundering and Financing of Terrorism (CCMLFT)

Legislative Decree No. 33 of Syria establishes the “The Commission for Combating Money Laundering and Financing of Terrorism (CCMLFT)” as the regulatory body responsible for handling matters related to money laundering and terrorist financing in Syria. The Agency is tasked with receiving and analyzing reports on suspicious transactions, conducting financial inquiries, and overseeing the implementation of the legislative decree. The Governor of the Central Bank of Syria serves as the chairman of the Agency.

Legislative Decree No. 33

Article 3

• Banking and financial institutions operating in Syrian free zones must adhere to the provisions of this legislative decree, as well as related implementing directives issued by the Agency. They are also subject to the banking supervision provisions outlined in Law No. 23 of 2002 and Legislative Decree No. 34 of 1 May 2005, concerning banking secrecy.

Article 4 

• Certain establishments not covered by the 2005 Legislative Decree on banking secrecy, including money-changing establishments, money-transfer establishments, investment funds, leasing companies, and others designated by the Agency, must maintain transaction records exceeding a specified value. These records must also be retained in cases of suspicion or changes in customer identity.
• The mentioned entities must verify client identities and addresses through official documents, retaining copies of these documents and transaction records for at least five years. This allows the Agency for Combating Money-Laundering and the Financing of Terrorism to access such records when necessary.
• Lawyers, legal instrument drafters, and independent accountants must comply with the requirements outlined in paragraphs A and B when engaging in various client-related activities, including real estate transactions, fund management, and the organization of business entities.

Article 5

•  Banking and financial institutions registered with the Central Bank of Syria, including foreign branches and subsidiaries, must monitor their transactions with clients to prevent involvement in money laundering or terrorist financing operations.
• The rules for monitoring are detailed in regulations issued by the Agency, covering various aspects such as:
  • Verification of client identities and beneficial owners.
  • Application of verification procedures for occasional customers above a specified transaction value.
  • Application of verification procedures in cases of suspicion, doubt, or changes in client identity.
  • Specification of source and payee in bank transfers.
  • Record-keeping for at least five years.
  • Indicators for detecting suspicious operations.
  • Obligation not to provide misleading information.
  • Employee training on monitoring.
  • Appointment of officers or committees for combating money laundering and terrorist financing.
• Internal auditors of public banks and auditors of the Government Banking Commission shall verify compliance with the monitoring regulations and report violations to the Agency.
• Banking and financial institutions must exercise caution and gather information when dealing with correspondent banks to avoid suspicious operations. If sufficient information cannot be obtained, such dealings should be avoided.

Article 6 

• Banking and financial institutions must take special precautions and exercise care in cases involving politically exposed persons, operations without the customer’s presence, complex or large transactions without an obvious economic purpose, and transactions with individuals or entities in non-cooperative countries and territories.

Article 7

• The Central Bank of Syria establishes an autonomous agency, the Agency for Combating Money-Laundering and the Financing of Terrorism, with defined responsibilities, including receiving and analyzing suspicious transaction reports, conducting financial inquiries, providing information to judicial authorities, and establishing international information exchange agreements.

Article 9 

• Parties specified in Articles 4 and 5, internal auditors, and legal inspectors must immediately report operations suspected of money laundering or terrorist financing to the Agency.
• Reports are forwarded to the Agency within one business day, and investigations are conducted within six business days. The Agency can request provisional freezing of suspicious accounts.
• The Management Committee decides on freezing accounts and can extend the freeze. The Committee is informed of all steps and results of the investigation.
• The Agency can request individuals suspected of money laundering or terrorist financing to provide documents or evidence regarding the source of funds.
• After investigations and analysis, the Management Committee adopts a final decision to release or continue freezing accounts, with reasons stated. Decisions are not subject to administrative review.
• Lifting Banking Secrecy: If banking secrecy is lifted, certified copies of decisions are sent to relevant authorities, parties, and foreign entities involved.

Article 11 

• The Agency establishes the FIU responsible for gathering, analyzing, and preserving information related to money laundering and terrorist financing. It exchanges information with foreign counterparts under the Chairman’s supervision and periodically reports relevant information to the Agency.
• The Agency’s Management Committee proposes the FIU’s staff, defines their duties, and makes appointments. Disciplinary measures can be taken against staff failing to perform their duties.
• The Agency can set up additional units to investigate reports and verify compliance with anti-money laundering and anti-terrorist financing measures, subject to similar staffing and disciplinary provisions.

Article 12 

• Reports made under this legislative decree, whether by individuals or entities, are to be kept in absolute secrecy. Documents and procedures related to investigations are also characterized by secrecy.

Article 13

• Various individuals and entities involved in the implementation of this legislative decree, including the Governor of the Central Bank of Syria, members of committees, and staff, enjoy immunity from prosecution for civil or criminal liability arising from their duties under this decree.

Article 18

• Syrian judicial authorities will engage in mutual judicial cooperation with foreign judicial authorities regarding money laundering and terrorist financing, following established legal procedures and agreements.

References:

1. Verification Research, Training and Information Centre
2. Money Laundering