Syria Country Summary

FATF Status

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

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 pervasive crime and corruption, characterized by human trafficking, arms trafficking, and a burgeoning drug trade, particularly in Captagon. The intertwining of state and criminal actors has created a systemic environment where corruption is rampant, with the government facilitating organized crime rather than combating it, leading to a fragile judicial system and a severely weakened economy.

Syria's economy has been devastated by the ongoing civil war since 2011, resulting in an 84% contraction of its GDP and a shift towards a war economy heavily reliant on diminishing customs and income taxes. The agricultural sector, which previously contributed significantly to the economy, now faces challenges exacerbated by international sanctions, particularly on oil imports, leading to widespread poverty and food insecurity. The investment climate remains precarious due to ongoing instability and the need for substantial reconstruction, despite potential growth opportunities in sectors like tourism and natural gas, as the transitional government struggles to attract foreign investment and rebuild infrastructure amidst political and economic turmoil.