Syria Expects $1 Billion for New Bank Licenses

Syria's central bank governor, Mohammad Safwat Rasslan, expects foreign capital inflows for establishing new banks in Syria to exceed $1 billion. The remarks came during the opening of the second edition of the Jordan Fintech Festival, where Rasslan noted that several Jordanian banks have submitted applications to invest in the Syrian market.

Legal Guarantees for Investors

In statements to the Syrian Arab News Agency (SANA), Rasslan said the law allows foreign investors to retain 60% of paid-in capital in foreign currency. He added that profit repatriation is legally protected, noting the removal of all previous restrictions on the sale, purchase, or transfer of foreign currency.

Banking License Criteria

The central bank governor outlined executive standards and instructions governing the licensing of Islamic and conventional banks, key among them:

• Applicants' experience and reputation
• Financial solvency of founders
• A required strategic banking partner holding a stake of at least 10% in the bank

Rasslan said the central bank is working to keep the initial licensing period between three and four months from the moment applicants submit all required documentation.

Alignment with International Standards

Rasslan noted that the central bank issues its regulatory and supervisory decisions in line with international standards, both in risk management and accounting. He said most Syrian banks have begun closing the gap in modern electronic oversight tools and integrating them with their financial and banking systems.

Efforts to Exit the Grey List

Rasslan described exiting the Financial Action Task Force's grey list as a current priority, requiring all banks and non-bank financial institutions to adopt the technologies, policies, and procedures needed to facilitate oversight. In August, Syrian Finance Minister Mohammad Yasser Barnieh issued a decision forming a ministry committee to update and implement a comprehensive strategic plan to combat money laundering and terrorism financing, as part of preparations to remove Syria from the list.

That same month, the World Bank approved a $100 million grant to Syria aimed at modernizing its financial sector and developing payment systems and banking oversight, marking a step in the institution's resumption of support for the country after a 14-year suspension.