The Central Bank of Syria is preparing a new regulatory and supervisory framework to reactivate and develop correspondent banking relationships between Syrian banks and foreign banks.
This came in a statement by the bank’s governor, Abdul Qader Hasriyeh, on Thursday, 27 November, who said the move follows what he described as “positive developments” in lifting international sanctions, including the restoration of communication via SWIFT.
According to what he explained on the bank’s Telegram channel, the step aims to:
Reintegrate the Syrian banking sector into the global financial system, Strengthen compliance with international standards for combating money laundering and terrorist financing (AML/CFT), Support transparency and build trust with international partners, Develop payment systems and operational infrastructure to ensure safe and efficient transfers.Hasriyeh said the Central Bank of Syria will lead the banking sector’s efforts “in a systematic and well-studied manner” toward openness and international integration, by setting standards, coordinating efforts, and enabling local banks to establish reliable correspondent banking partnerships abroad.
He stressed that this framework will represent a strategic step to strengthen the position of the Syrian banking sector within the international financial architecture, ensure banks are prepared to meet global standards, and support economic stability.
The Syrian Arab News Agency (SANA) had reported that the Central Bank governor, Hasriyeh, carried out the first transfer through the SWIFT system on 20 November, after a 14 year suspension due to sanctions imposed under the former regime.
What is SWIFT?
SWIFT is the acronym for the Society for Worldwide Interbank Financial Telecommunications, a cooperative, non profit organization that provides secure financial messaging services for payments at a high level of efficiency and at reasonable cost.
The idea of SWIFT emerged in the late 1960s with the expansion of global trade, and the organization was established in 1973 with its headquarters in Belgium, beginning operations in 1977.
The system aims to provide cutting edge technical tools for linking and exchanging messages and information among all financial markets through the banks responsible for carrying this out in different countries. This enables participating institutions to meet the needs of both foreign and local clients.
First direct transfer between a Syrian and a Saudi bank
Steps toward returning to the international system
Syria has recently taken what officials describe as “important” steps to reintegrate its financial institutions into the international financial system, most notably meetings held in Washington by Syrian Finance Minister Mohammed Yosr Bernieh and Central Bank governor Abdul Qader Hasriyeh with officials from the International Monetary Fund, the World Bank, the US Treasury Department, the Federal Reserve, JPMorgan Chase Bank, and numerous departments and entities linked to the IMF and World Bank.
The meetings focused on “updating fiscal and tax policies, enhancing governance and institutional credibility, and ensuring a transparent, investment friendly environment after years of sanctions and financial isolation.”
They also discussed mechanisms for gradually reconnecting with the international financial system through SWIFT and regional Arab platforms such as Buna, in order to test financial transfers with Syria in a safe manner before full reopening.
UN and US officials stressed during their meetings with the Syrian delegation in Washington the importance of implementing compliance and governance standards, to demonstrate to international partners that Syria is serious about adhering to global rules, thus enabling Syrian banks to restore their international correspondent relationships and gradually open US dollar accounts.
Syria’s financial opening signals the possibility of a gradual return of relations with global financial institutions, particularly after the easing of US sanctions and White House statements expressing an intention to repeal the Caesar Act in the future.
However, experts say this opening remains contingent on fulfilling requirements for upgrading digital and financial infrastructure, and enabling banks to conduct safe and transparent transfer operations.
Syria’s reintegration with the global financial system starts in Washington
Syrian Central Bank drafts regulatory framework for SWIFT’s return Enab Baladi.
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