President
Based on the provisions of the Constitution, and as approved by the People's Assembly at its ongoing session 20-02-1427 approver. 20-03-2006 ,

The following are issued:

Article 1

The following words and expressions in the application of this Act shall mean the meanings set out in respect of each of them:
• Exchange business: the purchase and sale of foreign banknotes and all means of payment in foreign currencies and their conversion in accordance with the provisions of this law and the cutting regulations in force.
• Exchange institutions: Exchange company or an exchange office authorized by a decision of the Monetary and Credit Council to exercise exchange business in accordance with the provisions of this law.
• Convertible currency: any currency that can be dealt with and transferred to other currencies freely in the global financial markets.
• Syrian Central Bank Law: Central Bank of Syria Act and Statute No. 23 of 2002.

Article 2

a. The Monetary and Credit Council has the right to authorize the establishment of institutions that carry out exchange activities in accordance with the provisions of this Law and Act No. 23 of 2002, which should be limited to exchange activities.
b. Exchange institutions are divided into two types:
1. Exchange companies that are licensed in the form of Syrian fool companies.
2. Exchange offices that are licensed in the form of companies of solidarity between natural persons of Syrian nationality and those in their form.
c. Syrian citizens and public and private banks may contribute to the establishment of foreign exchange teller companies. Arab and international exchange companies with distinctive experience may also contribute to the establishment of such companies.
d. A public bank contribution to the establishment of an exchange firm is required to obtain prior approval from the Cabinet of Ministers. In this case, the contribution of the banking public sector should not exceed 25 per cent of the company's capital.
e. The contribution of Arab and international exchange companies to the establishment of anonymous teller companies requires the prior approval of the Cabinet of Ministers. It also requires that the total contribution of such companies in any of the licensed exchange companies should not exceed 25 percent of their capital.
Non-licensed exchange institutions are prohibited from using a cashier, cashier, or a similar expression in any language, either in its own name, in its name or commercial address, or in appointing or advertising its commercial work type.

Article 3

Exchange institutions provided for in article II of this Law shall be established under the following conditions:
a-All shares of the enterprise exchange companies should be in the form of a joint-stock company, with nominal shares.
b. The founders of exchange institutions are required to be reputable and one of them is not bound by any offence of honour or integrity enumerated in article 102 of Law No. 23 of 2002.
c. Any shares or shares in any company or exchange office shall be subject to prior approval by the Central Bank of Syria.
A solidarity partner who withdraws from an exchange office may apply for permission to participate with others only after providing proof of withdrawal from the first solidarity company. Nor may any of the major shareholders of the joint-stock companies establish another company to engage in exchange business.
e-The waiver of the license of the enterprise banking company is considered void unless it is approved by the Monetary and Credit Council in advance. In this case, a new licence is considered and subject to all licensing procedures and conditions set out in this Act.

Article 4

a. It shall be determined in the instrument of establishment of a company or exchange office, which should be at least 250 hundred and fifty million Syrian pounds for exchange companies and 50 50 million Syrian pounds for exchange offices. The Central Bank of Syria can modify this minimum capital at any time by decree on the proposal of the Monetary and Credit Council. Exchange institutions are given a one-year deadline to settle their situation.
b. The joint-stock exchange company is entitled to have three branches in addition to its headquarters without an increase in its capital. It has to open other branches with the prior approval of the Central Bank of Syria. In this case, it has to increase its capital by 50 50 million Syrian pounds to the capital for each additional branch. In the remote areas set by the Monetary and Credit Council, the minimum increase in the company's capital is determined by the branch. Also, the capital of the exchange office in those areas was headed by 25 million Syrian pounds. The Monetary and Credit Council also specifies how exchange machines will be treated for these companies.
c. The payment of the full capital and any subsequent increase in cash and one payment to the Central Bank of Syria. Exchange institutions that have been hit by losses must also, within a maximum period of six months, either rebuild their capital, or reduce it, provided that they are not less than the minimum established by the provisions of this law.
Exchange institutions shall maintain permanent status with a cash reserve equivalent to 25 per cent of their capital and reserves and deposit this reserve in an acceptable bank by the Central Bank of Syria and in its name. The use of this reserve is subject to controls and instructions issued by the Central Bank of Syria. The proceeds of this reserve are returned to the deposited exchange institution.
e. The Monetary and Credit Board is entitled to adjust the ratio of the cash reserve referred to. It may also decide that the monetary reserve may be partially or fully replaced by bank bail for any or both of the banking institutions. The amount and conditions of the bail are determined by the Board.
And -- partners may not borrow from the company's capital or their annual withdrawals exceed net annual profits after payment of tax obligations and the withholding of compulsory reserves.
Exchange institutions' administrations should have the expertise and practical knowledge of the exchange business and their risks, and the estimation of the adequacy of this expertise is due to the Central Bank of Syria.

Article 5

a. The Monetary and Credit Council shall issue a decision setting out the grounds and procedures to be taken into account and the documents to be submitted when submitting applications for licensing and registration to exchange institutions and their branches.
b. The requesting applicant shall apply to the Central Bank of Syria to be accompanied by the contract of incorporation in the case of the companies of solidarity and the statute of the company in case the company is a joint-stock company. It will study it in light of the provisions of this law, laws and regulations in force, the needs of the national economy, the efficiency of the founders and those administering the license, and the central bank transmits the establishment and statute to the Ministry of Economy and Trade for approval.
c. If the request for authorization and approval of the Ministry of Economy and Trade is approved, the Board of the Monetary and Credit Council will issue the license decision within three months of the date of registration of the application with the Central Bank of Syria.
The founders will, after the issuance of the license decision, complete the procedures for the month of exchange institution at the Secretariat of the Commercial Register in the Ministry of Economy and Trade.
The Central Bank of Syria will then publish the license decision in the Official Journal and at the request of the licensed entity to register the company or office in the register of exchange companies and offices of the Government Commission to the banks. The company or the office shall not be entitled to work prior to this registration.
The Central Bank of Syria is entitled to use consultants to study licensing applications. The cost of this study is borne by the student student.
g. Licence is cancelled for the licensed company or the licensed office if it is not operational/operating within six months of the date of obtaining the licence.
h. No company may be registered to engage in exchange business, including transfers or transfers of funds on any official authority, unless the approval of the Central Bank of Syria has been obtained.
i-All exchange institutions must apply to the Central Bank of Syria during the month of January every year by requesting renewal of registration and payment of annual registration expenses set by the Monetary and Credit Council.

Article 6

a. The main centre of exchange companies is in one of the governorates chosen by the student of the license and may be upon the request of the board of directors of the company or the founders and the approval of the Central Bank of Syria to establish branches within the governorates and cities of the Syrian Arab Republic.
b. It is licensed to effect exchange offices in the centres of the governorates or Syrian cities chosen by the license student and do not have the right to open branches.
c. A licence is required for any company or cashier's office to provide a suitable store for business to be approved by the Central Bank of Syria. The considerations of the need for economic activity and tourism as well as safety and comfort considerations for workers in choosing the right place. The relocation of the headquarters or the branch may be made only after the prior approval of the Central Bank of Syria.

Article 7

a. It is prohibited for any destination to practise or disengage the exchange business only after obtaining a prior authorization issued by the Monetary and Credit Council in accordance with the provisions of this Law.
(b) Exchange institutions are prohibited from exercising any other work other than the exchange acts authorized to exercise them.
c. Banks and exchange companies shall consider the licensed contribution in accordance with the provisions of this Law to be the exclusive intermediaries in relation to the transfer and transfer of funds between the Syrian Arab Republic and abroad.
Exchange companies and banks are committed to abide by the provisions of instructions issued by the Central Bank of Syria regarding the organization of transfers of funds between the Syrian Arab Republic and abroad.

Article 8

Exchange institutions licensed to carry out banking operations in the Syrian Arab Republic shall exercise the following operations in accordance with the current exchange rates and the truncation systems in force:
a. The purchase of foreign exchange papers (banknotes) and all means of payment freed in foreign currency convertible currencies, cheques and traveller's cheques and payment of their value in the Syrian pound or in foreign exchange papers (banknotes).
b. Sale of foreign exchange papers (banknotes) and cheques in accordance with truncation systems.
c. Deposit the proceeds of bank cheques and traveller's cheques and any means of payment of foreign currency editors in their accounts open to domestic licensed banks permitted to deal with foreign exchange.

Article 9

1. Exchange companies shall be entitled to the foolish contribution, not to the offices, in addition to what is stated in Article 8 to exercise the following acts:
a. The sale of foreign currency deposited in its accounts open to banks licensed in accordance with the truncation systems. They may also use their accounts to cover the values of their foreign exchange imports.
b. Receiving and executing remittances received from abroad either in foreign currencies or in Syrian pounds.
c. To assist the banking system in transferring funds at the request of individuals within the territory of the Syrian Arab Republic. In particular to areas where no banking branches are available.
d. Export of surplus of banknotes (bank notes) abroad after organizing a pledge at the Central Bank of Syria to return their value under remittances or cheques received from abroad in foreign currencies and to deposit them in their accounts with the domestic licensed banks allowed to deal with foreign exchange. This is within a period of export history determined by the Monetary and Credit Council.
e. Transfer of foreign exchange amounts to the targets permitted by the truncation systems.
2. Exchange offices shall not exercise any of the work described in this article.

Article 10

Exchange firms, not offices, and with the prior approval of the Central Bank of Syria, may open accounts in banks outside the Syrian Arab Republic. The total account balances of any exchange firms at any time must not exceed 30 per cent of their capital.

Article 11

Exchange institutions are traded in all sale, purchase and exchange of foreign currencies at an exchange rate set by the enterprise within the limits set by the Monetary and Credit Council.

Article 12

a. It is forbidden for exchange institutions to cancel the license to carry out any of the banking operations that are not provided for in this law, in particular the following operations:
1. Open or maintain current accounts or deposits of the holders of the Syrian pound or foreign currency.
2. Accepting deposits or secretariats or granting loans, advances or debit of commercial paper in the Syrian pound or in foreign currency.
3. Dealing with future exchange markets.
4. Open or communicate documentary credits.
5. To issue guarantees or pledges in the Syrian pound or in foreign currencies.
6. To retain any accounts or balances in foreign currency or in the Syrian pound outside the Syrian Arab Republic without prior approval by the Central Bank of Syria and within the limits permitted.
7. Dealing with world commodity markets, precious metals and foreign securities. or to invest any amounts in foreign currencies or in the Syrian pound outside the Syrian Arab Republic, directly or indirectly, and whether to account for them or to account for others.
8. Obtain any credit facilities from abroad whether direct or indirect. Exchange companies and offices may also not receive bank loans from Syrian banks or from abroad for their work purposes or for speculative operations.
9. To lend, borrow, or manage a loan or subscribe to the issuance of loans. or they have raised any of their assets prior to obtaining prior approval from the Central Bank of Syria for any of these operations.
10. Release any form of payment or credit cards.
b. The Monetary and Credit Board has to add to the cases described above other cases as required by the public interest.

Article 13

None of the enterprise exchange institutions, in accordance with the provisions of this Act, shall, in part or in total, cease to operate for any period of time before they obtain prior approval from the Central Bank of Syria.

Article 14

The Central Bank of Syria determines the basis for estimating the assets of assets, including those that comprise the capital of the exchange institution, and that each institution is obliged to prove that its assets are already superior to those required for others at least equal to the value of its capital.

Article 15

Taking into account the provisions of Article 5 of this Law, it is subject to the prior approval of the Monetary and Credit Council every amendment to be introduced to the statutes of exchange companies or the establishment contract of exchange offices.

Article 16

The control of exchange institutions is entrusted to the Central Bank of Syria. Exchange institutions shall comply with the regulatory measures taken by the bank in question and the procedures imposed by the banking system for the protection of clients dealing with them, in particular:
a. To be provided with conditions and templates and within the deadlines prescribed by him, information, accounting and statistical data and proven documents for the availability of legal and material conditions for the exercise of their work and which are required.
b. To hold a special register in which the operations that exceed a certain amount are determined by the Central Bank of Syria on a daily basis to reflect the date of each operation, its serial number and the name of the trader for which the operation is carried out following the verification of its identity and address.
c. To maintain regular accounting records in accordance with the provisions of the Trade Act, its amendments and the requirements of the Central Bank of Syria in this regard, and in accordance with international accounting rules and assets, without first doing its operations, and should provide the Central Bank of Syria with no more than three months of history. The end of its financial net with an approved version of its annual budget and closing accounts according to the models it sets out. The Central Bank of Syria is entitled to request any information or other periodic data that it deems necessary to verify the integrity of its operations and to comply with the provisions and instructions of this law. The Central Bank of Syria is also entitled to carry out an inspection, which it deems appropriate on its records by its staff or by those designated by its auditors and exchange institutions to submit to them its records and other documents or statements.
(d) The records held by them for the day-to-day operations shall be the basis for the audit of the accounts carried out by internal observers or by the statutory auditor.
e. Prepare with the necessary equipment to detect counterfeit currency in all its premises.
Exchange institutions shall deal with their name or official address registered with the concerned parties by using the name or commercial address in all their publications, including receipts, documents and correspondence issued by them.
Exchange institutions should announce at a prominent place in the places of practice their work is a painting bearing the prices of buying and selling foreign currencies. All dealers will be provided with receipts or official notices bearing the ring of the company or office.
Exchange institutions shall have the necessary and adequate insurance for their offices and assets.

Rule 17

Exchange companies licensed under the provisions of this law are entitled to transfer net profits, capital of owners of their shares or shares from Arab and foreign exchange companies or expatriate Syrians whose contributions to the company's capital have been paid in foreign exchange to outside the Syrian Arab Republic. To obtain a patent from the financial services and the approval of the Central Bank of Syria.

Rule 18

If the Central Bank of Syria shows that an exchange institution violated the provisions of its statute, the contract of its establishment, the provisions of the trade law, the provisions of this law, the recommendations or measures imposed by the Central Bank of Syria, or if it took action, it harmed Syria's financial or tourism reputation. Or any other work to be determined by the Monetary and Credit Council. The Council may impose the following administrative sanctions against it:
a. Alert.
b. To prevent it from performing certain operations or imposing any other determination or restriction in the exercise of the profession.
c. Prevention of the President of the Board of the Company, the Commissioner or any of the partners from the exercise of the profession definitively or for a specific time.
d. Write-offs from the register of exchange institutions.

Rule 19

a. The administration of exchange institutions should ensure that all their operations are carried out according to the assets and provisions of professional secrecy.
(b) Exchange institutions may exchange information regarding their clients between them and the Central Bank of Syria.

Rule 20

Exchange offices and establishments may not be inspected, booked or held in any of their assets except by written request by the Central Bank of Syria or at the request of the competent courts or the prosecution.

Rule 21

Exchange institutions should avoid carrying out operations or actions aimed at misleading the traders in the market with a view to influencing exchange rates. They should avoid the misuse of information that they are looking forward to by virtue of their work.

Rule 22

a. Exchange institutions must comply with the provisions of the Anti-Money-Laundering and Financing of Terrorism Act and its amendments and operational instructions.
b. Banks and exchange institutions should ensure that amounts equal to or above 500 thousand Syrian pounds or their equivalent in foreign currencies sold, purchased or converted from or to exchange institutions are attached to the necessary supporting documents indicating the nature of the process Procurement, sale or transfer and the identity of its parties and such documents are retained in an appropriate form.

Rule 23

Exchange institutions shall appoint a good professional auditor with a good professional reputation to choose from the list of certified legal accounts accredited by the Central Bank of Syria, maintain proper accounting records and submit such records to the Central Bank of Syria in the form that they specify.

Rule 24

a. Notices and receipts related to exchange transactions and transactions are exempted from the fee.
b. Companies and exchange offices are charged with an income tax on real profits and a single rate of 25 per cent of net profits.

Rule 25

Revised by Law 29 of 2012

a. Any person who contravenes the provisions of paragraph (a) of article 7 of this Law and shall increase the profession of exchange without a licence is punishable by imprisonment from six months to one year and a fine of 1 million Syrian pounds.
b. Everyone who contravenes the provisions of paragraph (b) or paragraph (d) of article 7 of this Law shall be punished with a fine of 100,000 Syrian pounds to 500,000 Syrian pounds.
c. Any violation of article 7, paragraph (c), of this Law by transferring or transferring funds between Syria and abroad without prior authorization is punishable by imprisonment from six months to one year, the confiscation of movable funds and a fine for such funds as transferred or transferred.
d. Every other violation of the provisions of this Act shall be punishable by imprisonment from three to six months and a fine of 100,000 to 500,000 Syrian pounds or one of these penalties.
(e) The initiation of any of these acts shall be punishable by the specific penalty of the offender. The penalties outlined in the preceding paragraphs are doubled in the case of repetition.
The penalties described above shall not prevent the prosecution and punishment of offenders if the offence includes an offence under the Anti-Money-Laundering and Terrorist Financing Act.
g. The public right proceeding with regard to the offences set out in this article shall be moved only at the request of the Central Bank of Syria Administration Committee.

Rule 26

The Monetary and Credit Council is entitled to issue a decision to suspend exchange institutions or limit their activity on an interim basis if they call for emergency or exceptional economic or monetary conditions.

Rule 27

Exchange institutions are subject to the provisions of the Trade Act No. 149 of 1949 and its amendments in all that are not inconsistent with the provisions of this Act.

Rule 28

The instructions necessary for the implementation of this law shall be issued by decision of the Monetary and Credit Council.

Rule 29

This law is published in the Official Journal.
Damascus in 20-02-1427 my approver. 20-03-2006 My birthday.

President
Bashar al-Assad

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