DAMASCUS:
Syria’s central bank has ordered commercial banks to freeze all accounts linked to people and companies linked to the ousted regime of former President Bashar al-Assad, according to a document seen by Reuters and people familiar with the decision .
The circular, issued on Thursday, calls on banks to “freeze all bank accounts of companies and individuals linked to the defunct regime”, and to inform the central bank within three working days of the details of all frozen accounts.
It specifically calls on banks to freeze 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 July in a suspected Israeli attack in Syria near the Lebanese border. Israel made no comment on the attack.
Hussam Katerji and his companies are under US sanctions for, among other things, “facilitating petroleum shipments and financing to the Syrian regime,” according to the US Treasury website.
Reuters could not reach Hussam Katerji for comment.
The Katerjis were part of a small circle of businessmen close to the Assad family who rose to prominence during Syria’s civil war, which began in 2011 after Assad’s government cracked down on popular protests.
Assad was ousted by Islamist rebels on December 8. They have since installed an interim government and are making efforts to trace financial flows linked to his regime.
One banker, who spoke on condition of anonymity due to the sensitivity of the matter, said the central bank’s circular could not be easily implemented as many businessmen linked to the regime set up accounts in other people’s names or use front companies.
The new Syrian government had already implemented a general freeze of bank accounts after taking power, but individuals could challenge the decisions and withdraw or transfer money.
The new measures are intended to be stricter and more targeted and help authorities gather information on regime-linked finances, a Syrian official familiar with the matter said.
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