Federal Reserve Bank of New York Reactivates Syrian Central Bank Account After Fifteen-Year Suspension

The New York Federal Reserve reactivates Syria's central bank account for the first time since 2011, marking a major step in US-Syrian financial coordination.

By: AXL Media

Published: Mar 11, 2026, 11:54 AM EDT

Source: Information for this report was sourced from SANA

A Decisive Shift in Transatlantic Financial Diplomacy

The United States government has formally authorized the reactivation of the Syrian Central Bank’s account at the Federal Reserve Bank of New York, ending a period of financial isolation that began during 2011. U.S. Special Envoy for Syria Tom Barrack characterized the development as a foundational step toward renewed economic coordination between Damascus and Washington. In a public statement, Barrack noted that the restoration of these banking channels fulfills a strategic objective of the Trump administration to provide the Syrian state with a pathway toward economic recovery. This move is expected to serve as the primary mechanism for settling official financial obligations and managing state reserves through the American banking system.

Strategic Reintegration and Sanctions Relief Frameworks

The U.S. Treasury Department confirmed that the reactivation of the account is a central component of a broader strategy to responsibly reintegrate Syria into the global financial landscape. This follows recent legislative and executive shifts in Washington that have transitioned from a policy of comprehensive embargo toward structured engagement. Treasury officials emphasized that the move is designed to facilitate transparent financial activity while ensuring that the new Syrian government maintains rigorous compliance with international standards. By reopening the Federal Reserve account, the U.S. aims to move Syrian state finance away from informal or unregulated channels and back into the supervised global banking corridor.

Technical Settlement and Institutional Compliance Reforms

The Syrian Central Bank finalized the procedures to settle its long-standing banking relations with the Federal Reserve on February 28, according to official statements from Damascus. This technical settlement involved months of workshops and diplomatic engagement aimed at updating Syria’s internal regulatory structures. To meet the requirements for the New York Fed account, the Central Bank of Syria has implemented reforms aligned with the 40 recommendations of the Financial Action Task Force (FATF). These include enhanced anti-money laundering protocols and more robust counter-terrorism financing measures, which were prerequisite conditions for the restoration of correspondent banking ties with American institutions.