The SWIFT system is the backbone of the global financial world, connecting more than 11,000 financial institutions across over 200 countries through a secure network for international money transfers and banking communication. Beyond its technical function, SWIFT represents a global system built on trust, compliance, transparency, and financial credibility, making reintegration into this network one of the most critical milestones for Syria’s return to the international economy.
Currently there are branches of Arab banks operating in Syria that already use the SWIFT system and conduct financial transfers worth millions of dollars without major difficulties. Yet, in practice, whenever a Syrian citizen or investor attempts to send an international transfer to Syrian national banks, they often face rejection from foreign banks, despite the lifting of major economic sanctions on Syria, including more than 2,700 laws, executive orders, and punitive measures imposed since 1979, most notably the Caesar Act.
The response typically given is that Syria’s reintegration into the SWIFT system is underway, but the final decision rests with international banks. These are private institutions that must independently evaluate risk exposure before resuming full financial relations. Each global bank’s board of directors must determine whether dealing with Syrian institutions is sufficiently safe, a process that may take considerable time until the completion of what is known as the “Gap Assessment.”
At that stage, ambiguity often prevails, and many Syrians fail to understand the significance of this critical process. In reality, it is perhaps the single most important step in Syria’s banking rehabilitation and the essential gateway for the country’s reintegration into the global financial system through the SWIFT network, allowing Syria to function like any other nation within the international banking order.
“Syria’s return to the global SWIFT system is no longer merely a political decision, it is now a question of trust, risk assessment, and the ability of Syrian institutions to meet international banking standards.”
Dr. Osama Kadi
A Gap Assessment is a comprehensive evaluation process that compares the current state of banking institutions with internationally accepted standards and desired operational benchmarks. In other words, it is a highly sophisticated measurement and diagnostic procedure carried out by specialized financial consulting firms. One of the most important among them is Oliver Wyman, a firm which, based on recommendations from the U.S. Treasury, was contracted by the Syrian Central Bank and the Ministry of Finance to oversee the reintegration of Syrian banks into the global SWIFT transfer system. Those who are optimistic expect the company’s mission to conclude by the summer of 2026.
What Oliver Wyman is currently doing involves a detailed analysis of every aspect of Syria’s banking sector, including legal frameworks, technical systems, financial risk management, and compliance with strict international banking regulations related to stability, integrity, and transparency.
One might ask “Does Oliver Wyman create the banking rules?” Certainly not. Rather, the firm operates according to internationally recognized financial stability standards established by the Basel Committee on Banking Supervision, especially the Basel III framework issued in 2010 by the Bank for International Settlements in Basel, Switzerland. In addition, the process includes compliance with anti-money laundering and counter-terrorism financing regulations, as well as implementation of the “Know Your Customer” (KYC) principle and the standards of the Financial Action Task Force (FATF), established in Paris in 1989 during the G7 summit.
These standards represent the minimum requirements for any credible banking relationship. Without meeting them, no financial institution can gain international trust, regardless of its financial capabilities.
It is important to recognize that under the former regime, Syria’s reputation had deteriorated to the point where it was widely described as the “capital of Captagon.” Furthermore, corruption deeply infiltrated many Syrian banks through the presence of corrupt networks within their boards of directors.
Therefore, the delay in Syria’s return to the SWIFT system is not merely a technical issue. Rather, it is fundamentally linked to the speed at which trust can be rebuilt between Syrian national banks and the global financial system, as well as the readiness of Syrian banking institutions to comply with standards designed to safeguard international financial stability.
SWIFT is not simply a mechanism for transferring money. It is a trust-based network among banks, and that trust is only granted after verifying that the other party adheres to the highest standards of compliance and governance.
From the perspective of the Gap Assessment, several structural challenges clearly hinder Syria’s reintegration into the global financial system.
The first challenge lies in the weakness of Know Your Customer (KYC) systems within Syrian national banks. Most banking procedures still rely heavily on paper-based processes. Even more critically, Syria lacks a comprehensive national digital identity system after liberation, one that can be instantly and reliably verified. This severely limits banks’ ability to authenticate their clients before international partners, thereby increasing perceived risk levels in the eyes of global institutions.
The second major challenge concerns Anti-Money Laundering (AML) systems. Syrian banks suffer from a lack of advanced technological systems capable of monitoring and analyzing financial transactions in real time, in addition to weak integration with international databases and sanctions lists.
Here, strict compliance with FATF standards becomes essential. These standards include forty recommendations covering customer identity verification, retention of customer records, enhanced oversight of politically exposed persons, fintech risk management, tracking financial transfers, inspection capabilities, suspicious transaction analysis centers, treaty obligations, and more. Any deficiency in any one of these forty areas is considered a serious risk indicator and can discourage international banks from dealing with Syrian financial institutions.
“ Without strict compliance with anti-money laundering and FATF standards, Syria’s banking sector will remain outside the circle of international financial trust.”
Dr. Osama Kadi
Regarding financial stability, implementation of Basel III standards, across its seven main pillars, remains limited in Syrian banks. These include capital adequacy requirements, protection buffers, countercyclical buffers, loss absorption capacity, leverage ratios, liquidity standards, risk management frameworks, stress testing, disclosure and transparency requirements, and regulations concerning systemically important banks.
Beyond Basel III and FATF requirements, Syria must urgently reform its banking technology infrastructure, which remains in desperate need of modernization. Advancing digital transformation and strengthening cybersecurity systems are especially critical in a world where financial operations are now almost entirely dependent on digital platforms. The delay in modernizing Syria’s banking infrastructure constitutes a major gap affecting both efficiency and credibility.
Equally important is the need to improve the legal and regulatory framework, one of the most significant dimensions of the existing gap. Syrian legislation requires comprehensive modernization to align with global developments, especially in areas such as electronic signatures and Public Key Infrastructure (PKI). In addition, the independence of regulatory authorities must be strengthened to ensure effective implementation of laws and oversight mechanisms.
The role of the Gap Assessment is not limited to diagnosing these challenges. It also provides a clear reform roadmap, beginning with a comprehensive evaluation of the banking sector, followed by the precise identification of weaknesses, and ultimately culminating in a phased implementation strategy that ranges from immediate corrective measures to long-term structural reforms.
This roadmap includes measurable practical steps reflecting the level of commitment and stability in areas such as system modernization, legislative reform, human capacity building, and investment in digital infrastructure, all aimed at gradually achieving compliance with international standards.
Global banks are searching for clear answers to fundamental questions regarding Syria’s financial stability, adherence to integrity standards, and the reliability of its systems and data. This is precisely the mission currently being undertaken by Oliver Wyman. In the absence of satisfactory answers, the natural outcome is continued rejection and prolonged isolation from the global financial system, even if technical infrastructure itself becomes available.
“ Syria’s path back to the global financial system depends not only on rebuilding infrastructure, but on proving stability, transparency, and credibility to international banks.”
Dr. Osama Kadi
Ultimately, the Gap Assessment represents the true gateway for Syria’s return to the global financial system. It is the instrument that identifies weaknesses, defines the path toward reform, and builds the bridge necessary to restore trust between Syrian banking institutions and their international counterparts.
This is a cumulative process centered on rebuilding confidence with global banks. In reality, Syria’s Minister of Finance and the Governor of the Central Bank are making continuous efforts through ongoing communication and shuttle diplomacy with international financial institutions in Washington and elsewhere to emphasize that Syria is opening a new chapter with the world after the former regime isolated the country from the global financial system for six decades.
The question remains: can the American “perfumer,” Oliver Wyman, repair what decades of Baathist governments and corruption have destroyed?
