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Banks Preparing for Possible Syrian Asset Freeze
By Brian Monroe
printLarge banks are bracing for possible orders from the Obama administration to freeze assets of individuals in the Syrian government that could come as early as this week, say compliance professionals. The potential sanctions against the government of Syrian president Bashar al-Assad, which has been accused of killing hundreds of protestors in an attempt to stifle political dissent, would follow the Feb. 25 executive order from the White House that prompted dozens of large banks to cooperate on freezing a total of $30 billion tied to Libyan leader Colonel Muammar Gadhafi. The Libyan asset freeze order, issued on a late...
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The Senate's Foreign Relations Committee passed legislation Tuesday that would allow the White House to impose sanctions on entities that provide petroleum products or military assistance to Syria's government.
The emergence of jihadist units fighting in Syria against forces loyal to the government poses an immense challenge for banks utilizing U.S. Treasury Department licenses in the country, say sanctions experts.
The U.S. Treasury Department last year froze $77 million in assets tied to the Syrian government under sanctions against state sponsors of terrorism, according to a report published Wednesday.
As international pressure against Syria's crackdown on protesters mounts, efforts by financial institutions to identify transactions related to Syrian arms deals will likely prove fruitless, say analysts.
Syrians chafing under U.S. sanctions against the country's largest bank are likely attempting to use Lebanese financial institutions to circumvent restrictions, according to the U.S. Treasury Department.
Caught between pressure from U.S. lawmakers to crack down harder on Iran and Syria and the desire to act in concert with America's allies, the White House is walking a fine line in its use of economic sanctions.
The U.S. Treasury Department will announce sanctions against Syrian President Bashar al-Assad and six of his senior officials in response to Syria's violent suppression of anti-government protests, the Associated Press reported Wednesday.
A White House executive order issued late Friday in response to violence in Libya called on financial institutions to freeze the assets tied to the North African nation's government, but failed to specify one thing: how were compliance officers to know which accounts to block?