Research details

The Financial Action Task Force (FATF) sets global standards for anti-money laundering (AML), counter-financing of terrorism (CFT), and counter-proliferation financing. Independent experts conduct mutual evaluations to assess a country’s compliance with FATF standards. Based on their findings, a country either remains on the “white list” (low-risk because of adequate compliance), or is placed on the “gray list” (requiring reforms under increased monitoring) or the “black list” (high-risk jurisdictions facing severe financial isolation). Gray-listing and blacklisting trigger de-risking, as FATF members pressure their domestic banks to apply stricter due diligence when dealing with financial institutions from flagged countries. Syria has been on the gray list since 2010 due to AML/CFT deficiencies. By 2014, FATF acknowledged Syria’s significant reforms in AML/CFT measures but could not conduct an on-site evaluation, citing security concerns. Without this step, Syria remains on the gray list. Gray-listing worsens financial isolation, though moving to the white list alone would not fully restore Syria’s banking functionality. To exit the gray list, Syria’s interim government must engage with FATF, strengthen AML/CFT measures, and facilitate the long-delayed on-site visit.

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