Syria Country Summary

FATF Status

Syria is currently on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 21 February 2025

Since February 2010, when Syria made a high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies, Syria has made progress to improve its AML/CFT regime. In June 2014, the FATF determined that Syria had substantially addressed its action plan at a technical level, including by criminalising terrorist financing and establishing procedures for freezing terrorist assets. While the FATF determined that Syria has completed its agreed action plan, due to the security situation, the FATF has been unable to conduct an on-site visit to confirm whether the process of implementing the required reforms and actions has begun and is being sustained. The FATF will continue to monitor the situation and will conduct an on-site visit at the earliest possible date.

Compliance with FATF Recommendations

It should be noted that the new style FATF Mutual Evaluation has not yet been undertaken.

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Syria was undertaken by the Financial Action Task Force (FATF) in 2006. According to that Evaluation, Syria was deemed Compliant for 5 and Largely Compliant for 8 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 5 of the 6 Core Recommendations.

Syria is grappling with severe issues related to human trafficking, arms trafficking, and drug production, particularly with the country becoming a major hub for Captagon. The criminal landscape is dominated by state-embedded actors and foreign entities, such as Hezbollah, with systemic corruption permeating both the government and law enforcement. The ongoing conflict has devastated the economy, leading to widespread poverty and a lack of effective measures to combat organized crime, while civil society organizations struggle to operate under restrictive conditions.

Syria's economy has drastically contracted by 84% since 2010 due to the ongoing civil war, which has led to a reliance on diminishing customs and income taxes. The agricultural sector, which previously contributed significantly to GDP, now faces challenges exacerbated by international sanctions and the devaluation of the Syrian pound, resulting in widespread poverty and food insecurity.

The investment climate in Syria is severely constrained by ongoing instability and international sanctions, which have significantly deterred foreign investment and hindered economic recovery. The transitional government faces substantial challenges in rebuilding infrastructure and attracting the necessary investments for revitalization, despite potential growth opportunities in sectors like tourism and natural gas. The overall environment remains precarious due to the lack of security and the extensive reconstruction efforts required.