Earthquakes in Syria and Türkiye: Safeguarding Urgently Needed Charitable Assistance | JD Supra

[co-author: Rahma Bayrakdar]

During K2 Integrity’s 14 March webinar, panelists Chip Poncy and Mohammed Alaa Ghanem discussed the assistance required in Syria and Türkiye in the wake of the 6 February earthquakes; gave an overview of sanctions imposed on Syria by the United States, United Kingdom, and European Union; and shared keys to providing safe and effective earthquake relief to prevent sanctions violations and exploitation by parties on the ground, including the Assad regime, non-state actors, and terrorist organizations. Below we provide key takeaways from the webinar.

The Assistance Required in Syria and Türkiye

• Key figures on northwestern Syria:
  • 5M Population
  • 3M Food insecure people
  • 9M Internally displaced people (IDPs)
  • 9M IDPs living in camps
  • Northwest Syria has been experiencing a significant cholera outbreak with over 50 thousand cases reported since September 2022. The White Helmets, a civil defense force operating in the region, stated that “The destruction of infrastructure, water and sewage lines after the earthquake increases the possibility of an outbreak of the disease”
• Current state of aid delivery in northwestern Syria:
  • Humanitarian aid has for years reached northwestern Syria through southern Türkiye, which has also been devastated by the earthquake. The earthquake caused destruction to roads leading to Syria, the Hatay airport (the main airport in southern Türkiye), and the border areas, heavily disrupting aid delivery.
  • The United Nations Security Council (UNSC) has approved cross-border aid by the United Nations to enter Syria through southern Türkiye. However, this mechanism faces renewal every six months, meaning it is consistently under the threat of Russian veto.
  • The northwestern region of Syria is besieged by the Assad regime even though the regime has no direct control of the region, and the Assad regime will only allow aid to enter through authorized border crossings and regime-controlled territory. The Assad regime has a history of misappropriating, diverting, and benefiting from aid and has used aid to punish populations outside its control. The regime has only authorized one border crossing, Bab al-Hawa, which leads from southern Türkiye into Idlib.
  • Regime-controlled territories, such as the city of Jableh, suffered significant destruction as well. Within 24 hours, the Assad regime was able to receive aid through the Damascus International Airport from countries such as the UAE, Egypt, Algeria, and others. None of this aid reached the northwestern region.
  • Lifting sanctions on Syria has been a long-time goal of the Assad regime. Regime members have used the earthquake to advocate for lifting sanctions, claiming that sanctions are limiting humanitarian aid delivery.

Syria Sanctions Overview

• Syria sanctions implemented by the United States (U.S.), the United Kingdom (UK), and the European Union (EU) have been in place in some capacity for nearly two decades for activity related to terrorism, proliferation of weapons of mass destruction, and activity of the Assad regime, among other issues.
  • United States
    • Under the U.S. sanctions program against Syria, “the exportation, re-exportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of any services to Syria is prohibited.” As such, Syria is one of the few jurisdictions that is subject to comprehensive U.S. sanctions which means U.S. persons are prohibited from engaging in almost all activities related to Syria. Other comprehensive sanctions programs include North Korea, Iran, Cuba, and certain regions of Ukraine.
    • Regime-based sanctions targeting the Assad government and those acting for/on behalf of the regime
    • Caesar Syrian Civilian Protection Act targets entities conducting business with the Syrian government and its military and intel agencies
    • List-based sanctions (628 parties on SDN List with a Syrian location across multiple programs as of 24 February) including Syria, terrorism, NPWMD, and Iraq
    • The rule of thumb for OFAC sanctions as they relate to Syria is to assume something is prohibited unless there is an authorization that clearly authorizes it.
    • Department of Commerce’s Bureau of Industry and Security (BIS) maintains export controls related to sale of U.S.-origin goods to Syria.
  • United Kingdom
    • The UK imposes asset freezes on those identified as being responsible for the violent repression of the civilian population in Syria or supporting or benefitting from the Syrian regime.
    • There are several financial restrictions including in relation to the
      • sale or purchase of certain bonds issued or guaranteed by the Syrian regime
      • establishment of correspondent banking relationships with certain persons
      • provision of insurance and re-insurance services to certain persons.
  • European Union
    • The EU’s sanctions regime was introduced in 2011 in response to the violent repression of the Syrian population by the Syrian regime and those linked to it and includes 291 persons targeted by both an asset freeze and a travel ban, and 70 entities subject to an asset freeze
• Earthquake-related guidance and authorizations:
  • United States
    • OFAC General License (GL) 23, issued in February 2023 following the earthquake, offers broad authorization to engage in “all transactions related to earthquake relief that would otherwise be prohibited by the Syrian Sanctions Regulations” and expires in August 2023
    • Nongovernmental Organization GL § 542.516:
      • NGOs are authorized to engage in transactions with the Government of Syria, engage in new investment in Syria, and engage in exportation/re-exportation of services to Syria to support humanitarian projects, democracy building projects, education, noncommercial development, and preservation of cultural heritage.
      • U.S. depository institutions, U.S. registered brokers or dealers in securities, and U.S. registered money transmitters are authorized to process transfers of funds on behalf of U.S. or third-country NGOs to or from Syria in support of authorized activities.
      • This GL has no expiration, but it can be amended.
    • Supplemental Guidance for the Provision of Humanitarian Assistance: Separate from earthquake relief, the U.S. revised general licenses across its financial sanctions regulations to make requirements for humanitarian work carried out by international organizations, NGOs, etc., easier to implement.
    • BIS announced expedited licensing for exports to assist in earthquake relief on 17 February.
  • United Kingdom
    • The UK announced that has issued two General Licenses in order to make it easier for aid agencies to help in Syria without potentially running afoul of its sanctions regime:
      • General Trade License, Asset Freeze: Issued by the Office of Financial Sanctions Implementation (OFSI), this General License will authorize activities that would otherwise have been prohibited by the asset freeze for specified groups or organizations and their service providers.
      • General Trade License, Earthquake Relief Efforts: Issued by the Export Control Joint Unit (ECJU), this General License authorizes dealings in certain activity related to petroleum.
  • European Union
    • The EU issued a press release announcing that it would amend its restrictive measures to facilitate the speedy delivery of humanitarian aid:
      • The release reiterated that the sanctions do not prohibit the export of food, medicine, or medical equipment to Syria
      • The changes included a new humanitarian amendment waiving the need for humanitarian organizations to seek prior permission from EU member states competent authorities
• Key takeaways for persons wanting to support earthquake relief:
  • Need to understand what jurisdictions may have authority over the activity. Doing so requires an understanding of the various counterparties, banks, and other related parties to ensure that you can fully understand and assess the situation.
  • Requires a partnership with trusted parties in the region who understand the players as well as the regulatory obligations associated to minimize the threat of diversion or other activity that may be outside the risk appetite of the financial institution.

Providing Safe and Effective Assistance

• FATF Recommendation 8 requires that the laws and regulations that govern non-profit organizations (NPOs) be reviewed so that NPOs cannot be abused for the financing of terrorism.
• An effective approach to protecting the NPO sector involves the following four elements:
  1. Ongoing outreach to the sector
  2. Proportionate, risk-based supervision or monitoring
  3. Effective investigation and information gathering
  4. Effective mechanisms for international cooperation

Q&A

Q: Does Russia’s seat on the UN Security Council affect the delivery of humanitarian aid?

A: The United Nations Security Council (UNSC) has approved cross-border aid by the United Nations to enter Syria through southern Türkiye. However, this mechanism faces renewal every six months, meaning it is consistently under the threat of Russian veto. Russia is a long-time ally of the Assad regime; therefore, it will likely veto any resolutions that are not approved by the Assad regime, which may include UN aid delivery to non-regime-held regions such as northern Syria.

Q: Can you comment on the secondary impacts of unilateral sanctions on humanitarian aid delivery in Syria?

A: Sanctions can sometimes lead to unintended consequences. However, as described by Leslie during the webinar, the European Union, the United Kingdom, and the United States (and other sanctioning authorities including Canada and Australia), have issued clear, timely, and forward-leaning exemptions and licenses to facilitate the delivery of humanitarian aid in Syria. In the absence of clear evidence, it is difficult to blame unilateral sanctions for impacting the delivery of aid. As Mohammed mentioned, the Assad regime heavily controls whatever aid is delivered into Syria through Damascus, which is the main reason why opposition-held regions such as northwest Syria received no aid despite international assistance entering Syria. The Assad regime is, however, exploiting the tragic earthquake for its own personal gain by claiming that sanctions are to blame for the lack of relief efforts to those affected by the earthquake. Since sanctions have suffocated the Assad regime, regime members began calling for sanctions to be lifted immediately after the earthquake.

Q: Can a UK-HMT general license be used for an EU-related transaction?

A: General Licenses issued by the UK government are applicable to UK persons (and not EU persons). If an EU person involved in the transaction is also a UK person, or if there is another nexus to the UK, the UK-issued General License could apply.

Q: Can you shed some light on the existing OFAC GL no 22, which authorizes US persons to be involved in trade transactions in northeast and northwest Syria? Can you elaborate on “trade” as an authorized economic sector, and what is allowed and what is not?

A: OFAC’s GL 22, issued in May 2022, authorizes economic activity in certain sectors in non-regime-held areas in northwest and northeast Syria. This includes 12 different sectors, including finance, clean energy, and construction which may overlap with humanitarian relief.

Q: What guidance can you give on performing the FATF risk assessment/the four elements from FATF Recommendation 8?

A: NPOs seeking to comply with FATF Recommendation 8 should consult the following FATF Reports:

1. The 2014 Report on the Risk of Terrorist Abuse in Non-Profit Organisations, which can be used to create a taxonomy of risks facing the NPO sector.
2. The 2015 guidance on Best Practices for Combating the Abuse of Non-Profit Organisations (Recommendation 8), which can be used for devising risk-based mitigating measures.

Q: What can we tell our banks when they decline transfers of money just because the note says ‘Syria’? This includes donating to organizations that mention Syria in their name.

A: Banks have different policies in place with respect to Syria-related transactions. We recommend engaging with the bank to explain the purpose and details of the transaction and to provide any related documentation and links to regulations and guidance indicating that the transaction is covered by a license or exemption.

If you would like to donate to those affected by the earthquake, a list of trusted and reliable organizations providing aid in northern Syria can be found here.

To view a recording of this webinar on demand, click here.