Explained: Local and International Lists for Freezing Assets

Syria’s Committee for Freezing the Funds of Individuals and Entities (CFFIE) issues lists of terrorist or terrorism financing suspects. It enforces an immediate temporary freeze on all assets associated with these names, preventing any transfer, movement, or disposal of the assets. Two lists are maintained by the CFFIE: the local list that includes locals and foreigners curated by Damascus, and another list based on individuals and entities named by other countries requesting the Syrian government to freeze their assets.

The CFFIE operates under the Combating Money Laundering and Terrorism Financing Commission (CMLTFC) within the Central Bank of Syria. The CFFIE was established in 2011 by Prime Ministerial Decision No. 851, which serves as an executive instruction for Decree No. 27 of 2011, which itself amends Legislative Decree No. 33 of 2005 on anti-money laundering and terrorism financing. Under Decree No. 33, assets considered illegal, and therefore subject to freezing, include those linked to specific crimes in Syria or abroad, such as drug trafficking, terrorism, arms smuggling, migrant trafficking, and the theft and embezzlement of public funds. Both decrees support U.N. Security Council Resolutions 1267 (1999), concerning Al-Qaeda and its associates, and UNSC Resolution 1373 (2001), which requires all countries to adopt measures strengthening their legal and institutional capabilities to counter terrorist activities by freezing assets linked to individuals involved in terrorism.

The first is a local list, prepared by the CFFIE based on information from relevant local authorities. This list includes names of individuals and entities that commit, participate in, or facilitate terrorist acts, or act on behalf of or under the direction of terrorist individuals and entities. Those listed are not necessarily Syrian nationals. The local terrorism list is managed by the CFFIE, which comprises representatives from the CMLTFC and the Ministries of Foreign Affairs, Interior, and Finance. The list requires approval from the Public Prosecutor before being submitted to the Prime Minister.

Once approved, the local list is published in the Official Gazette, along with any amendments, such as the one issued by CFFIE Decision No. 3 on 11 July 2024. Decision No. 851 of 2011 grants individuals and entities listed on the local terrorism list the right to appeal to the State Council, an independent judicial and advisory body for administrative matters based in Damascus. The State Council reviews these appeals, and its decisions are binding on the commission if any amendments to the list are deemed necessary. However, Decision No. 851 does not clarify the procedure for submitting an appeal, the time limit for doing so, or whether an appeal can be filed by a representative, especially given that those listed may be subject to security monitoring.

After the publication of the local list in the Official Gazette, the CFFIE—through the CMLTFC—distributes it to relevant authorities, including administrative bodies like the Directorate of Cadastral Affairs, the Commercial Registry Directorate, and the Vehicle Directorate at the Ministry of Transport. This ensures that all assets belonging to individuals or entities on the list are frozen, with a notice confirming the CFFIE’s decision to freeze these assets. If any names are removed from the local list, the same authorities are notified to unfreeze their assets accordingly. The CFFIE may also circulate the local list internationally via the Ministry of Foreign Affairs, requesting other countries to freeze the assets of those listed within their territories, providing accompanying personal details and evidence justifying their inclusion.

The second type of terrorism list is the international list, which includes individuals and entities named by other countries requesting the Syrian Ministry of Foreign Affairs to freeze their assets following U.N. Security Council resolutions. The CFFIE reviews these requests within seven days and informs the requesting country of its decision. If the request is accepted, it is sent to the Public Prosecutor for approval and then communicated to the Prime Minister before adding these names to the international list. Decision No. 851 of 2011 does not specify criteria for accepting names. The international list is then distributed to administrative bodies for asset freezing, following the same process as the local list. The freeze may be lifted at the request of the submitting country if justified. Those on the international list may appeal to the Syrian State Council.

In both local and international lists, the CFFIE notifies affected individuals or entities once freezing procedures are complete. Decision No. 851 of 2011 does not define a specific personal notification method but states that information will be available on the official website of the CMLTFC.

If assets are frozen due to a name similarity, individuals or entities can appeal to the CFFIE, which will review and respond within five days. If the CFFIE confirms a similarity, it informs the complainant and contacts administrative bodies to lift the freeze. In case of rejection, the CFFIE issues a written response detailing the reasons.

Asset freezing under Decision No. 851 of 2011 is an administrative action by the CFFIE, which prohibits transactions involving frozen assets. This is particularly important because the decision allows for names to be removed from the list, enabling asset return to the original owners. If transactions with these assets were allowed, it would be difficult to return them to their original owner, should the latter’s name be removed from the list.

A key difference exists between asset freezing under Decision No. 851 of 2011 and freezing assets of those under trial by the Antiterrorism Court established by Law No. 22 of 2012.

For the latter, the movable and immovable assets of terrorism suspects are frozen by order of the Public Prosecutor. Upon conviction, frozen assets are transferred to the public treasury. In April 2024, the Council of Ministers, issued guidelines for managing and investing confiscated movable and immovable assets under a final judicial ruling (Law No. 26 of 2023), under a special system for managing and investing confiscated assets. Law No. 26 addresses the management, investment, and transfer of confiscated assets from individuals convicted by any court handling felonies or terrorism cases, as per various prior laws.

While individuals with frozen assets under CFFIE procedures according to Decision No. 851 of 2011 may be tried by the Antiterrorism Court if deemed necessary by security and judicial authorities. In such cases, the Public Prosecutor issues an asset-freezing order tied to the terrorism case. Upon conviction, the asset freeze order is executed, and assets are managed according to Law No. 26.