Syria Sanctions Relief and AML Reform

This article details the potential opportunities and possible precautions to consider as Syria navigates the promise of re-engaging the global economy to rebuild their financial standing and strengthen regional stability.

Sanctions relief supports multiple steps forward for Syria’s financial sector

The removal of Syria from the US State Sponsors of Terrorism designation follows two years of positive momentum toward reintegrating the country into the wider global economy. Several developments are helping re-establish the foundation of Syria’s financial sector: 

• The Central Bank of Syria was delisted from US, EU and UK sanctions in 2024 and 2025. 
• The Caesar Syria Civilian Protection Act was repealed in late 2025. 
• FinCEN authorized US correspondent accounts with the Commercial Bank of Syria in 2025. 
• Syrian banks began rejoining the SWIFT payment network in mid-2025 (Society for Worldwide Interbank Financial Telecommunication). 
• The Central Bank of Syria revalued and issued new currency in January 2026,  facilitating progress toward currency stabilization.
• Syria established a correspondent bank account with Turkiye's central bank in July 2026.¹

The combination of these steps sets the stage for further efforts to secure Syria’s infrastructure and move toward reconnecting the country globally. The level of unilateral sanctions relief Syria has received immediately lowers the barriers for institutional and corporate investment. This sanctions relief also helps begin to negate the legal, insurance, trade financing and shipping/logistics roadblocks that have inhibited fundamental business activities since well before the Syrian Civil War. 

Opportunity emerges in rebuilding initiatives

 Efforts to rebuild Syria are expected to cost between $250 and $400 billion, according to the World Bank.²  The conflict is estimated to have damaged nearly one-third of Syria's pre-conflict gross capital stock with measurable infrastructure losses covering energy, utilities, housing, healthcare, transportation, telecommunications and technology.³ As daunting as the rebuilding challenge appears, it also creates significant redevelopment opportunities, economic stimulation and potential job opportunities. Additionally, Syria’s geographic position between Turkiye, Iraq, Jordan and Lebanon opens valuable overland and maritime transportation and logistics routes offering potential to connect Gulf markets and create alternative routes for reaching European markets. 

Positive momentum is starting to emerge in repairing and restoring the country’s infrastructure and opening further economic opportunities:

• Turkiye and Syria established a Joint Economic Trade Committee targeting $5-10 billion in annual bilateral trade.⁴
• Saudi Arabia, the United Arab Emirates and Qatar made multibillion-dollar investment pledges to Syria.⁵
  
• Syria attracted about $28 billion in foreign investment in 2025, and is seeing an increase of $56 billion in committed projects in 2026.⁶ 
• The International Monetary Fund (IMF) is forecasting Syria’s economic growth at more than 10 percent for 2026, with strong growth continuing in 2027, supported by the ongoing implementation of economic reforms.⁷
• Around 1.5 million of the Syrian diaspora has returned since late 2024, strengthening population numbers.⁷ 

Reconstruction opportunities and reinvestment activity are both hopeful signs for the continued repair of Syria’s economy. However, the country is balancing this initial progress against remaining international business precautions tied to Syria’s ongoing banking sector rehabilitation and still-developing AML and CFT risk controls and regulations. 

Lasting reconnection relies on long-term AML/CFT reforms

Stronger and coordinated financial sector reforms and anti-money laundering (AML) and counter-terrorist financing (CFT) regulations are needed to bridge the gap between Syria making inroads toward recovery and meeting the standards for wider inclusion within the global economy. Syria is currently on FATF’s grey list. Several regional entities, individuals and destabilizing actors remain on international sanctions lists. These existing challenges may slow down or completely stall the ability for multinational financial institutions and organizations to engage with Syrian businesses. 

Several milestones are ahead of Syria to support reintegration with the global economy:    

• Establish a financial intelligence unit to support stronger supervision and transparency  
• Align financial-sector reforms with international standards
• Define risk-based AML and CFT regulatory frameworks and enforcement
• Strengthen the technology environment and information systems to support secure and streamlined financial transactions  
• Enhance Know your Customer (KYC) infrastructure and corporate transparency
• Accelerate participation in cross-border payment networks by expanding correspondent banking relationships at the international level  

The World Bank financial infrastructure grant and ongoing reengagement activities, including some in July 2026, with FATF, World Bank and IMF signal positive progress and underscore the levels of Syria’s cooperation and commitment to the current legislative, reform and regulatory efforts taking place. 

Staying positioned for opportunity starts with a risk-based strategy 

The timing of emerging business opportunities is likely to outpace the finalizing of Syria’s regulatory and legislative frameworks for the near-immediate future. Proactive financial institutions and organizations can consider implementing a risk-based AML/CFT strategy that reflects international regulatory standards in the interim. Incorporating processes and controls to support core elements of a risk-based approach positions a business to begin building relationships and exploring opportunities. Aligning  with international standards starts with demonstrating the ability to:  

• Identify customers properly and understand the AML and CFT risks they may pose by utilizing a unified view that connects customer due diligence, ultimate beneficial ownership information, risk assessments and transaction activity. 
• Prevent money laundering and detect terrorist financing by sharing intelligence across AML, CFT, fraud and other financial crime functions to improve risk visibility and real-time responsiveness.
• Comply with sanctions obligations by screening individuals, entities and payments for exposure to sanctions, PEP and adverse media risk leveraging current data and technology.
• Monitor for suspicious transaction activity by utilizing a contextual, risk-based approach that incorporates customer behavior and additional risk indicators.
• Demonstrate effective program governance by implementing transparent compliance processes and documented outcomes that support stronger investigations, reporting, oversight and auditability.

Building on momentum toward a brighter future for Syria