Money
US Treasury's Broad License for Syria Raises Oversight Concerns
2025-01-10

The United States Treasury Department has issued a six-month license that permits transactions with governing institutions in Syria, including those associated with the interim government led by Hayat Tahrir al-Sham (HTS). This authorization, while intended to facilitate humanitarian aid and stabilize the region post-Assad regime, has sparked concerns due to its broad scope. The license potentially allows entities involved with HTS, a U.S.-designated terrorist organization, to conduct business across all geographic areas of Syria. Critics argue that the lack of specific reporting requirements could lead to misuse, undermining efforts to support genuine reconstruction and stabilization. To ensure the safety and strategic development of Syria, greater oversight and accountability are essential.

The issuance of this broad license comes at a critical juncture for Syria. With the fall of Bashar al-Assad's regime, there is an urgent need for economic and infrastructural support. However, the Treasury's approach, which includes authorizing energy transactions and expanding rules for personal remittances, raises significant questions. The license does not specify what constitutes an authorized transaction, leaving room for interpretation and potential exploitation. Entities merely "involved" with HTS could leverage this ambiguity to operate without scrutiny, posing risks to both security and the well-being of the Syrian people.

Moreover, the absence of reporting obligations means that the U.S. government may not have visibility into these activities. This lack of transparency is particularly troubling given the lessons learned from Afghanistan, where Special Inspector General for Afghanistan Reconstruction (SIGAR) emphasized the importance of oversight to prevent unchecked transfers of funds during reconstruction. In a volatile environment like present-day Syria, the broad authorization without stringent oversight could facilitate illicit financial flows, shakedowns, and bribes, ultimately harming the very population it aims to assist.

To address these concerns, it is imperative that the Treasury amends the license to include robust reporting requirements and narrows the range of permitted activities. The focus should be on transactions necessary for restoring basic services such as healthcare, education, and utilities, rather than extending to entities loosely associated with HTS. By ensuring access to information on how the license is used and under what conditions resources are provided, the U.S. can better expose misconduct and support law enforcement efforts. This balanced approach would help Syria recover from decades of devastation without opening the door to illicit transactions and terror finance risks.

The United States must take proactive steps to strengthen oversight mechanisms and ensure that any financial or resource flow into Syria genuinely benefits its people. By refining the general license and prioritizing accountability, Washington can play a pivotal role in securing a stable and prosperous future for Syria, free from the influence of malign actors.

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