Former US Official: Banking Still Difficult in Syria Despite Sanctions Relief
U.S. companies shouldn’t rush to start business with Syria despite the Trump administration lifting some sanctions, said Daniel Schneiderman, a former Pentagon official who oversaw Afghanistan policy.
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Schneiderman, speaking last week at an event hosted by the Center for a New American Security, said any line of business -- from investors to insurers to shippers -- should be wary of the compliance risks that remain in Syria.
“If I'm advising private business, what I'm saying to them is it's not the time to put a significant, immediate investment into Syria because all the sanctions haven't gone away,” said Schneiderman, an adjunct senior fellow with CNAS. “That makes it impossible for the banking industry to do significant business.”
The Trump administration so far has lifted certain financial sanctions against Syria (see 2506300055, 2505230073 and 2507150041), although strict export controls are still in place (see 2507090015). Even if all trade restrictions are lifted, it will take more “effort on behalf of the U.S. government to get these businesses not to just simply de-risk away from Syrian clients,” Schneiderman said.
Ibrahim Al-Assil, a senior fellow with the Atlantic Council, called on the U.S. to continue lifting existing sanctions against Syria, which he said are a “big obstacle to rebuild the Syrian middle class, to rebuild society inside” the country. He said some believe the U.S. is prematurely rewarding the current Syrian government. U.S. lawmakers said they're exploring legislation to place conditions on removing sanctions on Syria.
“I've seen lots of calls to keep sanctions. I don't think that's the right reaction,” Al-Assil said. There's “still a burning urgency to lift sanctions on Syria.”