From black market measures to potential economic stability, what the return of SWIFT could mean for post-Assad Syria

To receive just a few hundred dollars from relatives abroad, Mohammad Shaheen had to dodge state surveillance and rely on shadowy intermediaries, operating almost like a fugitive. 

"I used secret passwords to identify the money courier on the road, who would hand me the cash and vanish within seconds," said Mohammad, who now lives in Jaramana, a suburb of Damascus where he settled after being displaced from Daraa.

“It was either this or risk getting arrested.” 

For over a decade, this has been the reality for millions of Syrians living under the shadow of Bashar al-Assad’s regime. The burdens of war, economic collapse, and Western sanctions imposed after the state’s violent crackdown on dissent in 2011 effectively severed Syria’s ties to the global financial system, including SWIFT, cutting off formal channels for international money transfers.  

In their place, informal systems emerged as vital lifelines, allowing Syrians abroad to send money home through networks of brokers.

But these workarounds came at a cost. The regime, desperate for hard currency, forced remittances through state-controlled channels and imposed official exchange rates far below the black market, siphoning off much of the value and using it to prop up its reserves. 

Mohammad, a construction worker, relied heavily on remittances sent by his brother in Germany to support his family. But his decision to turn to underground networks of money changers brought constant fears of arrest, accusations of economic crimes, and the risk of losing his only source of support. Those fears may finally be receding. 

Now, after Bashar al-Assad's ouster in December, Syria is beginning the slow process of reintegrating into the global banking system. Damascus is preparing to rejoin SWIFT, the Society for Worldwide Interbank Financial Telecommunication, a move that could end years of financial isolation for millions of Syrians.

In a milestone moment this June, the head of Syria’s Central Bank, Abdul Qadir al-Hasriya, announced the country had completed its first direct SWIFT-based international bank transfer since the outbreak of the war, hinting at more to come.  

For those who relied on the black market, the return of SWIFT offers a potential path to economic stability. Still, it also raises pressing questions about transparency, regulatory compliance, and whether the country’s financial institutions are prepared to meet global standards. 

Why SWIFT matters 

Founded in 1973 and based in Belgium, SWIFT is a global cooperative used by over 11,000 financial institutions in more than 200 countries. It facilitates the secure and standardised exchange of financial messages between banks, enabling trillions of dollars to move around the world every day. 

Though it does not move money itself, the SWIFT network is the backbone of international finance. Its exclusion is considered a form of economic quarantine. When Syria was ejected from the system more than a decade ago, it became effectively cut off from global banking. 

That isolation sent shockwaves through every level of Syria’s economy, and while workers like Mohammad faced hurdles receiving modest sums, traders and industrialists navigating millions of dollars faced even more insurmountable obstacles. 

Adnan Al-Hafi, a board member of the Damascus Chamber of Commerce, explained that business dealings under Assad’s sanctions-era policies were suffocatingly controlled. 

“Syria was a police state,” Adnan told The New Arab, noting that foreign currency transfers were only permitted through a government-approved platform called the export financing platform, a tightly regulated system run by just a handful of local exchange companies. 

According to Adnan, these companies, most notably Al-Fadel, Al-Fouad, Al-Muttahida, and Al-Haram, controlled access to foreign currency. Traders were required to deposit the local currency equivalent of their imports and wait, sometimes for months, until the central bank prioritised their request and released dollars or euros for them to complete the transaction. Payments were often disbursed in countries such as Egypt, Turkey, Jordan, or the United Arab Emirates (UAE).  

“In practice, that meant Syrian businesses had to pay upfront in hard currency directly to suppliers abroad while waiting for the sanctioned system to catch up,” he explained. “It was like paying for the same goods twice.” 

Risk and reinvention 

Many investors sought workarounds. Some obtained residency in neighbouring UAE or Egypt to facilitate business transactions. Others used informal middlemen, money changers operating from neighbouring countries, to act as unofficial banks. 

But those alternatives carried “serious risks,” said Fawaz Al-Aqqad, a fellow board member at the Damascus Chamber of Commerce and a prominent industrialist.  

“Informal couriers often lacked credibility, and money frequently disappeared. One wrong move could lead to financial ruin or imprisonment,” he told The New Arab. “Transfers through unofficial channels were criminalised. The fear never left us.” 

Now, after 14 years in “financial chaos,” as Fawaz described it, there is renewed optimism. Merchants expect easier, safer, and more transparent access to international financial services, as Damascus reintegrates into the SWIFT system. 

He explained that exporters will be able to receive payments directly into local bank accounts, and importers will transfer funds from Syrian banks to foreign suppliers without resorting to smuggled cash or risky intermediaries. 

“We’re finally turning the page,” said Fawaz. “This will reduce costs, remove fears, and bring back a sense of normalcy to trade in Syria.” 

Ziad Arbash, an economist and academic, described the Assad-era banking system as one where control, not commerce, was paramount.  

“The previous government, under direct orders from Bashar al-Assad, supervised every inflow and outflow of foreign currency,” Ziad said. “No one could access hard currency except through the Central Bank and later through the ‘platform’ system.” 

As sanctions intensified, Syria resorted to shadowy workarounds. According to Ziad, this included setting up shell companies in various countries to evade restrictions. Sometimes, this method, reminiscent of Russian tactics, involved one company nested within another to conceal ownership and origin.

These structures enabled not only the import of otherwise banned goods but also, in some cases, questionable exports, including the illicit Captagon trade that flourished under the fog of war. 

“We expect our first transaction with a US bank in the coming weeks,” he said, following a high-level meeting between Syrian and American commercial banks.  

But is Syria ready? 

Not everyone is convinced that Syria’s banking system is up to the task. 

Ali Mohammad, a financial and banking expert, warned that reconnecting to the SWIFT network is not as simple as flipping a switch.  

"Syria’s banks need a robust infrastructure," he said, citing the need for uninterrupted electricity, reliable internet, and a workforce trained in compliance with global standards. 

Perhaps more critically, Ali emphasised that Syrian banks must meet the transparency and anti-money laundering (AML) obligations required by SWIFT. These include strict adherence to regulations on preventing terror financing, areas where Syria has drawn international scrutiny. 

He pointed to the Financial Intelligence Unit within the Central Bank of Syria, which enforces AML compliance under Decision No. 19 of 2019, stating that “while Syrian banks claim to follow these rules, regaining international trust will be a long road.” 

Ziad echoed the concern. Speaking to The New Arab, he added that "rejoining SWIFT is not just a technical process of issuing bank codes. It’s a test of transparency and integrity,” he explained. “No bank should be used to finance terrorism or the drug trade.” 

He also acknowledged that Syria’s banking infrastructure remains outdated, though upgrades are underway, and that the fastest way forward was to “adopt ready-made banking systems from Europe or elsewhere.” 

He predicted a full reactivation of Syria’s SWIFT connectivity by the end of August, a timeline that, if met, would mark “a historic reversal of financial isolation.” 

“Whether Syria’s financial system can meet the high standards of the global banking community remains uncertain,” he added.

“But for the first time in over a decade, the country appears to be inching back toward the light.” 

Mawada Bahah is an independent Syrian journalist with bylines in local, regional and international outlets

Follow her on X: @MawadaBahah

This piece was published in collaboration with Egab