Damascus Orders Account Freezes

DAMASCUS (Reuters) – Syria’s central bank has ordered commercial banks to freeze all accounts tied to individuals and companies linked to the ousted regime of former President Bashar al-Assad, according to a document seen by Reuters.

The circular, issued on Thursday, directs banks to “freeze all bank accounts of companies and individuals linked to the defunct regime” and mandates that the central bank be informed of the details of all frozen accounts within three working days.

It specifically targets accounts belonging to the Katerji Group, known for its involvement in the Syrian oil trade. The group was led by brothers Baraa and Hussam Katerji.

Baraa Katerji was killed in a suspected Israeli strike in Syria near the Lebanese border in July, though Israel has not commented on the incident.

Hussam Katerji and his businesses are under U.S. sanctions for facilitating petroleum shipments and financing for the Syrian regime, according to the U.S. Treasury website. Efforts to reach Hussam Katerji for comment were unsuccessful.

The Katerjis were part of a small circle of businessmen close to the Assad family who became prominent during the Syrian civil war, which started in 2011 after Assad’s government suppressed popular protests.

Assad was ousted by Islamist rebels on December 8, who have since formed an interim government and are working to trace financial flows associated with his regime.

A banker who spoke on condition of anonymity due to the matter’s sensitivity noted that the central bank directive may be difficult to enforce, as many regime-linked businessmen used other people’s names or front companies to open accounts.

Following their rise to power, the new Syrian administration had implemented a general freeze on accounts, though individuals sometimes managed to challenge these decisions. The latest measures are intended to be more stringent and targeted to assist authorities in collecting information on finances linked to the regime.