DAMASCUS (Reuters) – 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 sources familiar with the matter .
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 of the details of all frozen accounts within three working days.
In particular, he 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 a suspected Israeli strike in Syria, near the Lebanese border, in July. Israel has not commented on the strike.
Hussam Katerji and his companies are under US sanctions, notably for “facilitating oil shipments and financing of the Syrian regime”, according to the US Treasury website.
Reuters was unable to 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 the Syrian civil war, which began in 2011 after the Assad government suppressed popular protests.
Assad was overthrown by Islamist rebels on December 8. They have since established an interim government and are working to trace financial flows linked to its regime.
A 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 given that many businessmen linked to the regime open accounts in other people’s names or use shell companies.
The new Syrian administration had already implemented a general freeze of bank accounts after coming to power, but individuals were able to challenge these decisions and withdraw or transfer certain funds.
The new measures aim to be stricter and targeted and to help authorities gather information on finances linked to the regime, a Syrian official familiar with the matter said.