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Syrian regime siphons off millions of dollars of foreign aid by manipulating local currency

The Guardian reported according to new research, the Syrian government is siphoning off millions of dollars of foreign aid by forcing UN agencies to use a lower exchange rate.
Researchers from the Center for Strategic and International Studies (CSIS), the Operations & Policy Center thinktank and the Center for Operational Analysis and Research found, the Central Bank of Syria, which is sanctioned by the UK, US and EU, in effect made $60m (£44m) in 2020 by pocketing $0.51 of every aid dollar sent to Syria, making UN contracts one of the biggest money-making avenues for President Bashar al-Assad and his government.
According to the report, as Damascus hit by new US sanctions and the collapse of the banking system in neighbouring Lebanon, it is is relying increasingly on unorthodox methods for raising funds – money either pocketed by officials in Damascus for their own personal wealth, or put towards the 10-year-old war effort.
The Guardian said that researchers analysed hundreds of UN contracts to procure goods and services for people living in government-held areas of Syria, where more than 90% of the population are living in poverty since the Syrian pound, or lira, crashed last year.

It mentioned that while the central bank’s official exchange rate is now SYP2,500 to the US dollar, the black market rate is SYP3,500. Legitimate traders and consumers prefer to use the black market rate, as they receive more Syrian pounds for foreign currency.
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Since the UN is forced by the Syrian government to use the official rate, half of foreign aid money exchanged into Syrian pounds in 2020 was lost after being exchanged at the lower, official rate.
“This shows an incredibly systematic way of diverting aid before it even has a chance to be implemented or used on the ground,” said Natasha Hall, of the CSIS, a Washington-based thinktank that helped compile the research.
“If the goal of sanctions overall is to deprive the regime of the resources to commit acts of violence against civilians and the goal of humanitarian aid is to reach people in need then we have this instance … where aid is at complete contradiction to those two stated goals.”
Following 10 years of civil war in Syria, international donor fatigue, already seen in decreasing aid pledges, has turned to more overt political re-engagement with Assad’s regime.
Without the US playing a strong role in finding a political solution in Syria, which Washington still publicly advocates, Arab nations – including the US-allied Jordan, the United Arab Emirates, Saudi Arabia and Egypt – have recently restarted diplomatic talks, reopened borders for trade and signalled renewing economic cooperation.
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The Guardian said, the US allows Damascus to play a major role in funnelling Egyptian gas to Lebanon to power the country’s fuel-depleted power plants. Interpol allowed Syria to rejoin its network even as the fate of dissidents captured throughout the war remains unknown.
Examining 779 publicly available procurements for 2019 and 2020, listed on the UN Global Marketplace database, researchers found that up to $100m was lost in the exchange rate.
According to researchers, if salaries, cash-aid programmes and other funding streams not made public were included, the bank could be making hundreds of millions of dollars.
According to The Guardian, the funding has been channelled through various UN agencies – the Office for the Coordination of Humanitarian Affairs (OCHA); the World Food Programme; the UN Development Programme; the UNHCR; the Food and Agriculture Organisation; and Unicef.
The UN’s financial tracking system told the researchers it did not monitor the amount of money exchanged into Syrian pounds as “tracking such information was beyond the scope of their mission”.
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More than 350,000 people have died in Syria over the past decade, and governments have donated on average $2.5bn a year to the UN’s Syria programmes since 2014.
In 2016, the UN was accused of aiding the regime by diverting billions of dollars in aid to government-held regions while leaving besieged areas without food and medicine.
Human Rights Watch (HRW) has warned that UN agencies and governments risked complicity in human rights violations in Syria if they did not ensure transparency and effective oversight.
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Last year, the US announced an additional $700m in humanitarian assistance for Syria. The UK government has given £1.59bn in aid to Syria between February 2012 and June 2021.
A Foreign, Commonwealth and Development Office spokesperson said: “The UK does not provide any aid through the Assad regime … Robust processes are in place to ensure that our aid reaches those who need it most.”
Hall said there was a “reticence” about investigating how much aid had been diverted. She said donors were well aware of the problem. “I think it is about
“There’s really no way for us, as independent consultants, to know the full extent of how aid is spent inside the country … We just wanted to flag that, even through this limited portal to understanding how much is spent, it’s already tens of millions of dollars which is hoarded.”
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She believes the UN should negotiate a preferential exchange rate with the Syrian government – – to at least reduce the amount siphoned off.
Sara Kayyali, of HRW, said “there was no due diligence in terms of human rights” within UN procurement to avoid bankrolling Syria.
She said: “This should be a wake-up call to the UN … they need to revise the way they provide aid and revise how they consider their obligations to respect human rights in light of this, because it’s difficult to justify this idea that hundreds of millions of dollars are going to an abusive state apparatus."
Danielle Moylan, a spokesperson for the UN agencies mentioned, said: “The UN welcomes all independent scrutiny of humanitarian operations in Syria. Our foremost priority has, and always will be, assisting the people in need in Syria, guided by humanitarian principles, accountability to the affected populations, transparency, efficiency and effectiveness.
Moylan said: “The majority of UN’s procurement for our humanitarian response in Syria is made in international and regional markets and therefore not affected by the Syrian exchange rate. Otherwise, as is the case in any country, the UN in Syria is required to use the official exchange rate."
“In the past, the UN and humanitarian partners have negotiated a ‘preferential’ exchange rate for humanitarian operations
Source: theguardian
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- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
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Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
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Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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