Syrian Finance Minister Yisr Barnieh said on Wednesday that Damascus is working with the US Treasury and International Monetary Fund on a banking compliance strategy, as the country seeks to secure American business investment.
On the sidelines of the IMF and World Bank annual meetings in Washington, Mr Barnieh said sanctions “are behind us”, with Syria now focusing on institutional reforms.
Most sanctions on Syria have been lifted since its new government formed after the toppling of Bashar Al Assad's regime in December. But experts say concerns over money laundering and terrorism financing remain key hurdles to attract US investment, as Syria looks to reconnect with the global financial system.
Mr Barnieh said the Ministry of Finance has developed a national strategy for the next year that is being discussed with the Treasury and IMF.
“This strategy is to ensure that we have highest integrity in our financial sector, financial systems,” he said in response to a question from The National.
Mr Barnieh said the strategy is supported by the US Treasury, adding the Ministry of Finance has been in contact with the department every week.
Syria also remains on the Financial Action Task Force Grey List, another key obstacle towards unlocking foreign investment. Syria has been on the grey list since 2010 after the FATF found it to have weak measures to battle money laundering and terrorism financing.
“We will be out of the grey list very soon,” Mr Barnieh said.
He spoke during a moderated panel discussion with IMF regional director Jihad Azour at the fund's headquarter on the sidelines of this year's annual meetings.
The Syrian delegation's presence in Washington this week is the second it has made this year after a near 15-year absence during the Assad regime. Reconstruction costs range in the tens of billions of dollars, while officials from Damascus also acknowledge a list of other technical and financial challenges.
Mr Barnieh said the most pressing issues are restoring confidence and trust with the public sector, fighting corruption and restoring fiscal credibility, acknowledging the government will have to achieve fiscal discipline while also meeting the basic services of Syrian civilians.
He said he wants Syria's economy to be led by a strong private sector, with foreign investors taking the lead on infrastructure projects.
“We will not finance any investment project for now, because we need to make sure that we have fiscal discipline,” he said.
Gulf states and Turkey have played a central role in investing in Syria, with deals being made with the UAE's DP World, Qatar's UCC Holding, and an agreement with Saudi Arabia to protect mutual investments. Turkey also joined Arab regional partners to pledge $14 billion for infrastructure development.
Last month, MasterCard signed a preliminary agreement with the Central Bank of Syria to help develop a digital payments infrastructure and issue local and international bank cards. Mr Barnieh said Syria will hold discussions with Visa this week.
He also said Syria remains in close discussions with major US banks.
