The Autonomous Administration of North and East Syria (AANES) announced that trading in dollars for business purposes, even at the level of grocery stores and small buying and selling operations, is allowed. However, currency exchange and transfers are prohibited without obtaining licenses.
The co-chair of the Anti-Money Laundering and Terrorism Financing Directorate at the Central Monetary and Payment Office of the Autonomous Administration, Khalil al-Dhiab, stated on Tuesday, November 19, that shop owners have the right to sell goods in US dollars and return the remaining amount in dollars or Syrian pounds, but they are not allowed to exchange foreign currencies or transfer them.
He added, according to what was published on the official website of the Autonomous Administration, that violators will bear the legal consequences of engaging in currency exchange and financial transfers without a license, as the violator will be referred to the public prosecution.
Al-Dhiab clarified that AANES prohibits practicing currency exchange and financial transfers without obtaining a license from the Central Monetary and Payment Office, according to a previous circular issued with the number “70.”
He mentioned that the prohibition was part of directives aimed at maintaining the financial system in northeastern Syria, based on the Currency Exchange Regulation Law issued in 2023.
AANES periodically reminds of its decision issued at the beginning of this year, as it published a circular yesterday, Monday, stating the prohibition of work in the currency transfer and exchange sectors in its controlled areas without obtaining the necessary licenses.
This circular is considered an extension of a previous one issued by AANES in August 2023, which granted a grace period for currency exchange and financial transfer offices to obtain a license allowing them to operate.
AANES had previously granted a grace period for workers in the sector to obtain licenses and then announced the extension of this period multiple times.
In August, it issued the Precious Metals Law, which prohibited the trade or manufacture of precious metals and gemstones without obtaining a license from the Precious Metals Directorate at the Central Monetary and Payment Office, stating that the office will later issue instructions specifying the terms and conditions for the license.
The law stated that the license would need to be renewed annually before the end of each year, according to the instructions to be issued by the Monetary and Payment Office.
In September, the Autonomous Administration restricted the movement of money to and from its controlled areas. At that time, it stated that the decision to prevent the transfer of money to and from its controlled areas, which was issued about a year ago, aims to maintain monetary stability.
Khalil al-Dhiab, the head of the Anti-Money Laundering and Terrorism Financing Office, stated to the official website of the Autonomous Administration that the instructions related to the transfer of money across borders were issued to preserve the monetary stability of the local currency.