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 associated with the defunct arrangement” and inform the central bank about details of all frozen accounts within three working days.
It specifically called for banks to freeze accounts belonging to the Caterji Group, which is known to be involved in the Syrian oil trade. The group was run by brothers Bara and Hussam Caterji.
Bara Katerji was killed in July in a suspected Israeli strike in Syria near the Lebanese border. Israel did not comment on the attack.
According to the US Treasury website, Hussam Katarji and his businesses are under US sanctions, including for “facilitating petroleum shipments and financing to the Syrian regime”.
Reuters could not reach Hussam Caterji for comment.
Caterji was part of a small group of businessmen close to the Assad family who rose to prominence during the Syrian civil war, which began in 2011 after Assad’s government cracked down on popular protests.
Islamic rebels ousted Assad on December 8. He has since installed an interim government and efforts are being made to trace the financial flows associated with his rule.
A banker, who spoke on condition of anonymity due to the sensitivity of the matter, said the central bank’s circular cannot be easily implemented as many regime-linked businessmen set up accounts in other people’s names, Or use shell companies.
The new Syrian administration had already imposed a general freeze on bank accounts after taking power, but individuals were able to challenge the decisions and withdraw or transfer some funds.
A Syrian official familiar with the matter said the new measures are intended to be more stringent and targeted and to help authorities gather information on finances linked to the regime.
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