The central bank of Damascus has instructed commercial banks to freeze all accounts associated with individuals and companies linked to the removed regime of former President, according to a document reviewed by Reuters and sources familiar with the directive.
Issued on Thursday, the circular directs banks to freeze all bank accounts of companies and individuals linked to the defunct regime and report the specifics of the frozen accounts to the central bank within three working days. It specifically targets freezing accounts tied to the Katerji Group, notably active in the Syrian oil trade and led by Baraa and Hussam Katerji.
Baraa Katerji was reportedly killed in a suspected Israeli airstrike in Syria close to the Lebanese border in July, with no official Israeli response provided. Hussam Katerji and his businesses face U.S. sanctions for their involvement in facilitating petroleum shipments and financing to the Syrian Regime, according to the U.S. Treasury website. Reuters was unable to reach Hussam Katerji for comment.
The Katerji brothers were among a select group of businessmen linked to the Assad family who gained prominence during the Syrian civil war that erupted in 2011 after government suppression of protests by rebels in December 8. Subsequently, they have established an interim government and are tracking financial activities tied to the former regime.
A banker, speaking anonymously due to the sensitivity of the issue, expressed challenges in executing the central bank's directive as several regime-associated businessmen have accounts under others' names or through front companies.
Following the assumption of power, the new Syrian authorities had initially imposed a broad freeze on bank accounts, permitting individuals to contest decisions and access or transfer certain funds. The current measures aim to be more rigorous and focused, assisting authorities in monitoring finances tied to the past regime, as stated by a Syrian official familiar with the situation.