Banking in Syria is controlled by the Central Bank of Syria which also controls all foreign exchange and trade transactions. All commercial banks in Syria were nationalised in 1966. The Central Bank gives priority to lending to the public sector, while the private sector often banks abroad, a process that is more expensive and therefore a poor solution to industrial financing needs. Many business people travel abroad to deposit or borrow funds. It is estimated that US$6 billion has been deposited by Syrians in Lebanese banks. Reforms in the financial sector commenced in the 2000s, including the introduction of private banks and granting licences to foreign banks. However, Syria’s economy is still highly regulated. Foreign banks, for example, are required to be joint-ventures, and allowed up to 49% foreign ownership, and not hold a controlling stake. As of 2018, there were 14 private banks, including three Islamic banks. All these banks had a foreign strategic partner mainly from Lebanon, but also from Jordan, Qatar, Saudi Arabia, Kuwait and Bahrain. Foreign banks are subject to sanctions imposed by various countries. There were no branches of foreign banks in Syria and no 100% owned private Syrian bank, although the laws allow both. The biggest bank by far in Syria is the government-owned Commercial Bank of Syria. On Dec. 22, 2020, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) added the Central Bank of Syria to the Specially Designated Nationals and Blocked Persons List (SDN List). History Nationalisation of banking At independence, French-and British-owned banks dominated banking activity in Syria. The largest bank, the French-owned Banque de Syrie et du Liban (Bank of Syria and Lebanon), assumed central-bank functions and became the bank of currency issue, in addition to its commercial operations. In 1947 Syria joined the International Monetary Fund (IMF) and pegged its currency to the U.S. dollar at LS 2.19148 = US$1, a rate that was maintained until 1961. The Central Bank of Syria commence operations in 1956. It controls credit and commercial banks, controls the money supply, issues notes, and acts as fiscal agent for the government. Also in 1956, as a result of the Suez War, French and British banking interests in Syria were seized as enemy assets. In 1958, and after the union with Egypt, the state began to Arabize the commercial banking system and in 1961 implemented a policy of limited nationalization. In