On May 23, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued Syria General License (GL) 25, which provides immediate sanctions relief in response to President Trump’s recent announcement regarding the cessation of sanctions on Syria. GL 25 effectively lifts long-standing prohibitions under the Syrian Sanctions Regulations, allowing for new investment and private sector activity in alignment with the President’s “America First” strategy.
The United States Department of State has concurrently issued a waiver under the Caesar Syria Civilian Protection Act (Caesar Act), aimed at helping foreign partners and allies unlock Syria’s potential for recovery and growth. This initiative represents a significant step in a broader U.S. government effort to dismantle the sanctions architecture imposed on Syria due to actions by the Bashar al-Assad regime.
Secretary of the Treasury Scott Bessent expressed optimism about the new chapter unfolding for the Syrian people, stating, “As President Trump promised, the Treasury Department and the State Department are implementing authorizations to encourage new investment into Syria. Today’s actions will hopefully put the country on a path to a bright, prosperous, and stable future.”
With the Assad regime’s history of brutality and support for terrorism being highlighted as factors of the past, the U.S. is signaling its commitment to a stable and unified Syria. While GL 25 extends sanctions relief to the new Syrian government, it comes with the condition that Syria will not become a haven for terrorist organizations and will protect its religious and ethnic minorities.
The new sanctions relief is characterized as a significant step toward achieving the President’s vision, as GL 25 opens the door for comprehensive economic activities across all sectors of Syria’s economy. Importantly, this relief is not extended to terrorist organizations, human rights violators, drug traffickers, or supporters of the former Assad regime, such as Russia, Iran, or North Korea.
GL 25 authorizes a range of previously prohibited transactions, including new investments, financial services, and activities related to Syrian-origin petroleum. Additionally, it facilitates transactions with the newly established Syrian government and certain entities previously identified as blocked in an accompanying annex.
In a significant move, the Financial Crimes Enforcement Network (FinCEN) has also provided an exception, allowing U.S. financial institutions to maintain correspondent accounts for the Commercial Bank of Syria.
As OFAC prepares to issue further guidance regarding the implementation of GL 25, stakeholders are encouraged to reach out to OFAC’s compliance hotline for any questions. This ambitious initiative underscores the United States’ renewed commitment to fostering a stable and prosperous future for the Syrian people.
