Syria’s Central Bank Issues Orders Freezing Accounts Associated With the Regime of Former President Assad

Targeting important companies like the Katerji Group, Syria’s central bank has directed banks to freeze accounts connected to Assad’s government.

Commercial banks have been ordered by Syria’s central bank to freeze any accounts associated with people and businesses connected to the overthrown government of former President Bashar al-Assad. 

According to a circular sent on Thursday, banks must notify the central bank of any blocked accounts within three business days. 

The action especially targets the Katerji Group, which is controlled by brothers Baraa and Hussam Katerji and is a significant participant in the Syrian oil trade. Israel has not officially responded to the alleged Israeli attack that killed Baraa Katerji in July close to Syria’s border with Lebanon.

According to the US Treasury, Hussam Katerji and his companies are already subject to US sanctions for allegedly assisting the Assad government financially and with the transportation of petroleum. There were no successful attempts to contact Hussam Katerji for comment.

The Katerji brothers were among a select group of businesspeople who rose to prominence during the 2011 Syrian civil war, which broke out after Assad’s regime brutally put down anti-government demonstrations. 

The Islamist rebels who overthrew Assad on December 8 have now installed a provisional government and are stepping up their attempts to track down financial transactions associated with his regime. 

Speaking on condition of anonymity, a banker with knowledge of the matter pointed out that putting the new measures into effect may be difficult. To protect their assets, a number of regime-affiliated individuals allegedly established accounts under different names or employed front firms. 

Some people were able to defy the directives and withdraw or transfer money, even though the new government had already closed bank accounts when it took office. The new actions are intended to be more stringent and focused, assisting authorities in identifying money networks linked to the Assad government, a Syrian official said.