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 chairman of the U.S. Senate Committee on Foreign Relations will introduce legislation intended to cut off Syria's "economic lifelines" with Russia and Iran, he said in a hearing.
The promised release of over 2 million Syrian government emails and diplomatic communiqués will create a major challenge for banks and securities firms, say compliance professionals.
U.S. financial institutions must freeze any account and block any payment linked to the Syria Islamic International Bank (SIIB), the U.S. Treasury Department announced Wednesday.
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.
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.
Large 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.
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